Rakesh Jhunjunwala Bats For Banning Bitcoins In India

"I think regulators should step in and ban Bitcoin. And they should focus on the digital rupee."

Rakesh Jhunjhunwala Image Source (PTI)

New Delhi: Billionaire investor Rakesh Jhunjunwala, also known as Warren Buffet of India, said on Tuesday that the country's regulators should ban cryptocurrencies such as Bitcoin. His comments came as the Indian Parliament considers The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, slated for introduction, consideration, and passing during the ongoing Budget session of Parliament.

Rakesh Jhunjhunwala, a partner at asset management firm Rare Enterprises with a net worth of $3.3 billion as of February 24, 2020, said he "will never buy bitcoin."
"I think it's speculation of the highest order. I don't want to join every party in town. I think the hangover is much worse," he told CNBC on Tuesday.
Bitcoin slumped 17% on Tuesday, falling as low as $45,041 after US Treasury Secretary Janet Yellen issued a warning about cryptocurrency, sparking a sell-off across cryptocurrency markets.

According to Coin Metrics data, Bitcoin had a spectacular run in 2021, rising more than 90% this year. The substantial gains were partly attributed to the increased adoption of Bitcoin by major investors and companies, including Elon Musk's Tesla and the Bank of New York Mellon. According to Jhunjunwala, the regulators of India have a role to play in keeping Bitcoin out.

"I think regulators should step in and ban Bitcoin. And they should focus on the digital rupee."
The bill's purpose is to create a framework for the facilitation of the official digital currency issued by the Reserve Bank of India (RBI) and to "prohibit all private cryptocurrencies in India."
However, according to the Lok Sabha Bulletin, certain exceptions will be permitted "to promote the underlying technology of cryptocurrency and its uses."

The central bank is looking into the need for and introducing a digital version of the fiat currency.
In 2018, India's RBI prevented banks and other financial institutions from facilitating cryptocurrency transactions. In March last year, acting on a petition filed by India's cryptocurrency exchanges, the Indian Supreme Court, headed by Justice Rohinton F Nariman, quashed the RBI circular on the grounds of disproportionality.

The new bill is likely to make things difficult for cryptocurrency exchange owners.
Confirming the development, Sathvik Vishwanath, founder, and CEO, Unocoin, told ABP News last month, "From what we understand, the government is planning to bring it (Bill) on the table. But what will happen after that is not clear. If it gets delayed, take more time, or a new committee will be formed. We are representing our concerns to the government. The government had planned a similar bill in 2018 We have to wait and watch for more clarity."