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Crypto Is Like a ‘Ponzi’ Scheme, India’s Central Bank Warns

In a strong warning to Prime Minister Narendra Modi’s government, a top official at India’s central bank reiterated concerns over cryptocurrency trading, likening the virtual coins to Ponzi schemes.

Seeking a ban on cryptocurrencies, Reserve Bank of India Deputy Governor T. Rabi Sankar said the digital coins threaten “financial sovereignty” and “undermine financial integrity” of a country given that there are no underlying cash flows.