Reserve Bank of India Deputy Governor T Ravi Shankar on Monday pitched for banning cryptocurrencies, saying it is worse than Ponzi schemes and threatens the country’s financial sovereignty. Shankar said that crypto-technology is based on the philosophy of avoiding government control, it has been specially developed to bypass the regulated financial system. He said that cryptocurrencies can destroy the ability of the monetary system, monetary authority, bank system and the government in general to control the economy.
“Looking at all these factors, it can be concluded that banning cryptocurrencies is probably the most appropriate option for India,” Shankar said while addressing the Indian Banks Association’s 17th Annual Bank Technology Conference and Awards Ceremony.
‘The future of cryptocurrency is not decided in India’
Let us inform that just last week the Minister of State for Finance, Dr. Bhagwat Karad also commented on cryptocurrency. On Saturday, he said that the private cryptocurrency operating in the country is not legal and nothing can be said about its legal status in the future. Karad told reporters in Indore, “There is no recognition of (private) cryptocurrencies in India either by the Reserve Bank or the government. Cryptocurrency is currently not legal in the country.
The Minister of State for Finance said that he cannot tell right now whether private cryptocurrencies will be legalized in the future. He said that something can be said in this regard only after discussions are held at the top level of the government.
“There are reports that some people have invested in (private) cryptocurrencies,” Karad said. Therefore, a proposal to levy 30 percent tax on profits earned from transactions of cryptocurrencies has been made in the recently presented general budget.