Cryptocurrencies are getting popular with every passing day. More money is being fed to the market, as people continue to look for investment and trading opportunities. Also, the emergence of crypto as a reliable payment gateway has made it an effective replacement for fiat.
However, since its inception, crypto has had a fair share of criticism. It was repeatedly referred to as a bubble or a fraud. Many officials and authorities have also asked to impose an outright ban on cryptocurrencies. A similar train of thought was recently shared by RBI Deputy Governor T Rabi Sankar.
India has a large cryptocurrency community but its officials are not really fond of the concept. Recently, India had imposed a 30% tax on crypto earnings. This regulation of crypto in the country was deemed to be a positive development by crypto geeks.
However, the decision has received mixed views from the experts and regulators. The country’s Reserve Bank Deputy Governor said that crypto is even worse than a Ponzi scheme. He said that crypto is a direct threat to any country’s sovereignty.
RBI Deputy Governor criticizes crypto philosophy
The world of cryptocurrency and blockchain is primarily focused on the concept of decentralization. It means that no authority holds any control or power over crypto. However, the RBI Deputy Governor believes that this anonymity of usage is aimed to eliminate the control of the governing authorities. He also added that it is specifically made to stay out of the regulated financial system.
Moreover, the RBI Deputy Governor was of the view that cryptocurrencies can wreck the economy and currency system of any country. It snatches away the government’s control over the economy and nullifies the banking system of a state.
T Rabi Sankar shared his views while addressing the Indian Banks Association 17th Annual Banking Technology Conference and Awards. He said that “all these factors lead to the conclusion that banning cryptocurrency is perhaps the most advisable choice open to India.”
He further criticized crypto for not having any underlying cash flows or intrinsic value. He also said that crypto can act as a tool in favor of money laundering and terror financing. Thus, they should be kept as far as possible from the country’s financial system. At a time when the country is moving in favor of the concept of crypto, such remarks from a high-level official is quite concerning for the crypto community of the region.
