One of India's most followed investors has expressed strong criticism of Bitcoin, arguing that it should be banned by their government, as it is a purely speculative asset with no real use.
Speaking to CNBC's Street Signs Asia, the billionaire specifically said that Bitcoin is not a currency. According to him, only sovereign governments can create a currency. Furthermore, its volatility already excludes it as a payment method.
The words of the Indian investor
"All over the world, the power to issue currencies should rest with the state alone," he said. “An asset that fluctuates at 5% or 10% per day cannot be a currency. If the dollar rises by 1%, it is news that is echoed around the world. If an asset fluctuates 15% a day, I think it is first-rate speculation ”.
Rakesh manages a large portfolio under his wealth management firm Rare Enterprises, with a net worth of $ 3,2 billion, and is India's 38th richest man.
The billionaire is adamant that he will never buy Bitcoin. When asked if he doesn't suffer from FOMO as his colleagues make millions with Bitcoin, he insisted that just because an asset is rising doesn't mean you have to get on board.
“I wouldn't even buy it for $ 5. I will not buy it even if it increases. I don't want to join all the parties in the city. I think hangovers are much worse. You should go to parties you like ”.
India should ban Bitcoin
In addition to making his anti-Bitcoin stance clear, he went further by supporting the government's proposed ban. He believes that the Indian government should intervene and prevent the Investors to lose their money with Bitcoin.
“I think regulators should step in and ban bitcoin. And they should focus on the digital rupee, and the power to issue currency should rest with the state alone. And in the end it will be like this. The greatest sovereign right is to issue currency ”.
Banning Bitcoin in India is still a sensitive topic, with reports claiming that the government has already started the process to implement it. He also recently proposed a bill that aims to ban Bitcoin and lay the groundwork for a digital rupee.
This isn't the first time India has cracked down on the cryptocurrency sector. There were reports of a ban on the use of Bitcoin in the Asian country as early as 2017.
The Reserve Bank of India then went on to ban banks from processing Bitcoin-related transactions. The Supreme Court later overturned this law and the industry has flourished ever since.
Some of the major Indian exchanges, including CoinDCX and WazirX, have posted new records in user registrations and trading volume. Despite the alleged bitcoin ban seems imminent, the local industry remains confident that India will not ban Bitcoin. Investors cross their fingers, at least.