[2017-12-30] India’s Ministry of Finance Compares Bitcoin and Cryptocurrencies

[cybersofts]

India’s Ministry of Finance Compares Bitcoin and Cryptocurrencies to ‘Ponzi Schemes’



India’s Ministry of Finance has claimed that Bitcoin and the other digital currencies are “like Ponzi schemes” and investors should take extra caution when investing in them, in a statement issued this Friday.

The ministry added that the cryptocurrencies lack “intrinsic value,” as well as the backing by any assets and “mere speculation” is the only reason why their prices continue to increase.

In its statement, the Ministry reiterated that there is a real and heightened risk of an investment bubble in the cryptocurrency market that is similar to Ponzi schemes. This may result in an immediate and prolonged crash where investors, particularly the retail consumers, may lose all their hard-earned money.

Part of the statement reads:

    “There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes.”

The government of India is yet to introduce regulations covering the digital currency market, but it already created an interdisciplinary committee to research and to develop a regulatory framework for the sector.

The committee’s members included the country’s central bank, the Reserve Bank of India (RBI).

Meanwhile, the Indian Supreme Court has issued an appeal to the government in November to start the drafting of a regulatory framework to ‘control the flow of Bitcoin’ in the country.

Despite its latest warning, the finance ministry has not implemented a total ban on virtual currency trading and has not announced any measures that will curb the adoption and trading of digital currencies in India.


Source: https://cointelegraph.com/news/indias-ministry-of-finance-compares-bitcoin-and-cryptocurrencies-to-ponzi-schemes

[1714188513]

1714188513

[1714188513]

1714188513

[meer45]

This is an interesting statement and I feel like we are running in circles about this issue. Some big bankers continue to insist that cryptocurrencies are like Ponzi schemes, but their explanation afterwards just makes no sense at all. I wish we could move past this stage and start talking about how the crypto environment could be regulated.

[Slow death]

Despite its latest warning, the finance ministry has not implemented a total ban on virtual currency trading and has not announced any measures that will curb the adoption and trading of digital currencies in India.

If they really believe even Bitcoin and Cryptocurrencies are ponzi schemes, then why they still have not taken much steps would it be about such a ponzi scheme? or is it that they still do not have so much information necessary that could prove that Bitcoin and Cryptocurrencies are ponzi schemes? What I do not understand is why certain governments are every week in the news channels to take different positions, today they say yes, next week they say no. For a government this is something very bad

I feel like we are running in circles about this issue.

They look like russia.

[newwest]

I think after this statement India has made it stands sort of clear that they would not be encouraging this cypto currencies and may further bring some laws or impose a ban so that they can close this chapter. Well this would effect the market and btc prices may fell a bit for sure if this happens.

[Taki]

The government and banks can aware us as long as they wish about crypto currencies, but till it brings me profit without any investment (I am investing into it only those coins that I made in signature campaigns participation that I could save for all those months and years) I will stay here and continue my road.

[darkangel11]

I think after this statement India has made it stands sort of clear that they would not be encouraging this cypto currencies and may further bring some laws or impose a ban so that they can close this chapter. Well this would effect the market and btc prices may fell a bit for sure if this happens.

Don't confuse regulations with bans. Why would they need to ban it when it's nothing else but an investment, something that appreciates in value over time and offers a certain degree of risk. If you buy wine, you're also risking that it may become sour or there can be an earthquake that breaks the bottles... People should be working on making those old knuckleheads broaden their horizons.

As for the ponzi scheme claim I have only two words to say: facts please.