The Bank of India could take further action against crypto

TL;DR Breakdown

• T-Rabi Snankar brands cryptos as Ponzi schemes.
• Bank of India executive believes cryptos should be banned immediately.

Recently the deputy governor of the Bank of India, T-Rabi Shankar, has compared the cryptocurrency market to scam Ponzi schemes. Shankar believes that decentralized trading in India should be banned even though some individuals from the RBI have given free will to use the tokens.

Crypto trading in India appears to be back in regulators’ sights after the RBI’s second-in-command gave his take on the decentralized industry. T-Rabi Shankar was appointed as deputy governor of the RBI for May 2021 and has been at the hub of crypto regulation in the country ever since.

Bank of India deputy claims cryptocurrencies have no purchasing value

Among the opinions that the Bank of India deputy governor gave on the crypto market is that the tokens do not have a real purchasing value.

While Shankar continues to attack cryptocurrencies, Nirmala Sitharaman, finance minister in the country, is promoting her Union Budger plan launched in the first days of February. The project consists of giving profits to the country based on crypto investments with a range that exceeds 30 percent. However, neither the country nor the Bank of India has spoken freely about the cryptos.

Another notable development in the virtual market is India’s launch of its RBI-backed stable coin. This cryptocurrency will follow the value of the Indian Rupee, whose currency has an equivalence of 75.67 Rubies for every dollar.

Shankar’s views on crypto differs from colleagues

While T-Rabi Shankar’s views hold power at the Bank of India, his opinions are far from the ideals of his colleagues, such as Shaktikanta Das. The central agency director clarifies that all the positions on cryptos have been discussed as a group. Das also reveals that any opinion linking to cryptocurrencies is discussed with the administration in India.

According to the Bank of India, the CBDC or stable coin linked to the Rupee is different from a cryptocurrency whose market has taken off more than a decade. This cryptocurrency will work similarly to the Nigerian CBDC, the Bahamas, or the stable Jamaican currency issued in mid-2021. CBDCs are currencies backed by each country’s central bank, so their prices are expected not to be volatile.