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Indian Central Bank Chief Insists Crypto Should Be Banned

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India's central bank has reaffirmed its policy of banning cryptocurrencies such as bitcoin and the ether.

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The Governor of the Reserve Bank of India (RBI) described cryptocurrency trading as gambling.

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He warned that crypto “will undermine the authority of the RBI and lead to the dollarization of the economy.”

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"Some people call cryptocurrency an asset, some call it a financial product, but every asset or financial product needs to have an underlying value. But cryptocurrency does not have any underlying value," he said.

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“Anything whose valuation is dependent entirely on make-believe is nothing but 100% speculation, or to put it bluntly, it is gambling,” the RBI chief stressed. 

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“In our country, we don’t allow gambling. If you want to allow gambling, treat it as gambling and lay down the rules.”

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"Cryptocurrency masquerading as a financial product or a financial asset is a completely misplaced argument," he said.

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"The Reserve Bank, being the monetary authority of the country as the central bank, will lose control over the money supply in the economy," he said. 

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"It will undermine the authority of the RBI and lead to the dollarisation of the economy," he cautioned.

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