Russia (bbabo.net), - Cryptocurrencies and investments in them are akin to a Ponzi scheme, that is, a financial pyramid, and their legislative ban is the most reasonable option for India. This would avoid threats to financial and macroeconomic stability.

This was stated by the Deputy Chairman of the Reserve Bank of India Rabi Sankara. “We see that cryptocurrencies do not have a clear definition - they are not a currency, an asset or a commodity, they have no underlying cash flows, no inherent value; they are akin to Ponzi schemes, and maybe worse,” NDTV quotes Sankara as saying.

Crypto exchanges and Indian investors, on the contrary, are in favor of regulating cryptocurrencies as an asset, and the recent decision of the government of the country to introduce taxation of income from the sale of digital currencies has given them a hint that digital currencies will not be banned after all. However, the Central Bank of India is still opposed. “Cryptocurrencies cannot be regulated by anyone in the financial market. It is impossible to regulate what cannot be defined,” Rabi Sankara is categorical.

He explained his position by the fact that cryptocurrencies were originally created in order to bypass the regulated financial system. Sankara also rejects the argument that cryptocurrency should be included in the regulatory framework for the development of blockchain technologies, explaining this by the anonymity and decentralization of the system, which operates exclusively in the virtual world, which attracts illegal transactions. If they were authenticated centrally, it would be possible to support the development of the blockchain without any digital currency, the deputy chairman of the Central Bank of India concluded.

In January, the Bank of Russia also made a proposal to practically ban cryptocurrencies: the regulator considered that it was enough to legalize only two options - buying and selling on foreign platforms and the right to own cryptocurrencies. The Russian regulator, similarly to the Central Bank of India, pointed to the threats to financial stability that are associated with servicing illegal activities with cryptocurrencies.

Nevertheless, last week the government of the Russian Federation published the concept of legislative regulation of the circulation of cryptocurrencies, which suggests a softer option than the Bank of Russia: it is proposed to regulate the circulation of digital currencies with strict obligations of all market participants, with an emphasis on protection from large investments for unqualified investors. A broader approach to the regulation of cryptocurrencies is supported by the Russian Ministry of Finance.

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