The Reserve Bank of India (RBI) has come out swinging against cryptocurrency, likening it to a “Ponzi scheme.”
The Indian government has been considering the possibility of moving forward with crypto adoption, proposing a tax on digital currencies in what would be a major step toward accepting it as legal tender.
According to TechCrunch, however, the RBI is not a fan.
“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 even be worse,” said T. Rabi Sankar, deputy governor of RBI.
The RBI is not doubt concerned about the adoption rate of crypto within the country, the world’s second-largest internet market. It remains to be seen if the government will continue moving forward, or if the pressure from the RBI will lead to a change of plans.
