RIYADH: Likening cryptocurrency to a “Ponzi scheme,” a top official of India’s central bank has suggested a ban on the digital coins, Indian media reported.
T. Rabi Sankar, deputy governor of the Reserve Bank of India, was quoted as saying cryptocurrencies have been “specifically developed to bypass the regulated financial system.”
India is considering banning most cryptocurrencies in the country under a proposed bill.
Sankar added that: “Banning cryptocurrency is perhaps the most advisable choice open to India and there are strong reasons to keep cryptocurrencies away from the formal financial system.”
According to the proposal posted on the Lok Sabha’s website, the lower house of India’s bicameral Parliament, “ it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
The long-awaited bill also seeks to create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India.
Local media also quoted RBI Gov. Shaktikanta Das as saying that cryptocurrencies are a threat to macroeconomic and financial stability and cautioned investors against punting on them.
India’s 2022-23 budget has proposed a 1 percent tax deducted at source on virtual currency payments over Rs10,000 ($133.19) per year. While the minimum tax will be Rs50,000 per year for specified persons.
