Holpop News

Rabi Sankar of the Reserve Bank of India (RBI) compared cryptocurrency to Ponzi schemes and said that banning them, rather than regulating them, would be the “most expedient choice” for the Indian government.
The deputy governor of the RBI said cryptocurrencies cannot be defined as currencies, assets or commodities.
“Cryptocurrencies are not currencies, financial assets, real assets or even digital assets. Therefore, they cannot be regulated by any financial sector regulator. You can’t regulate something that can’t be defined,” he said.
Sankar believes that regulating cryptocurrency will eventually lead to its use as a means of savings and even in some cases a currency. Simply regulating digital currencies could be akin to encouraging its use. Nevertheless, he acknowledges that some people will still use cryptocurrency even if it is banned, just like drugs.
He also pointed out that the existence of cryptocurrency in an ecosystem dominated by fiat money “is bound to have a destabilizing effect on the monetary and fiscal stability of the country.” The official added that if cryptocurrency is regulated so that it can be used as an investment asset, its usefulness as a means of savings will increase and divert users away from the rupee.
“In addition, unlike the value of the rupee, which is determined by monetary policy and its status as legal tender, the value of cryptoassets is based solely on the expectation that others will also value and use them,” he concluded.