Cryptocurrencies Like “Ponzi Schemes, Maybe Worse”: RBI Deputy Governor

Mumbai: Cryptocurrencies are akin to Ponzi schemes or even worse and banning these is the most sensible option for India, the Reserve Bank of India’s deputy governor said on Monday.

“We have also seen that cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flows, they have no intrinsic value; that they are akin to Ponzi schemes, and may be even be worse,” T Rabi Sankar said in a speech.

“All these factors lead to the conclusion that banning cryptocurrency is perhaps the most advisable choice open to India,” he added.

The country’s central bank chief last week delivered a stark warning against investing in cryptocurrencies, saying they lacked the underlying value of even a tulip – in a reference to a speculative bubble that gripped the Netherlands in the 17th century.