Cryptocurrencies are akin to Ponzi schemes, according to an RBI representative.


“We have also seen that cryptocurrencies do not lend themselves to the definition of a currency, an asset or a commodity; that they do not have underlying cash flows, that they do not have no intrinsic value; that they are like Ponzi schemes, and they can be even worse,” said T. Rabi Sankar in a speech.

“All of these factors lead to the conclusion that banning cryptocurrencies is perhaps the wisest choice for India.”

Last week, the head of India’s central bank issued a stark warning against investing in cryptocurrencies, saying they lacked the underlying value of a tulip – in a reference to a speculative bubble that has seized the Netherlands in the 17th century.



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