by Kenneth Schortgen, The Daily Economist:
In the land that doesn’t really appear to care at all about the wants, desires, and needs of their people when it comes to money, on March 24 a member of India’s ruling political party sent a request to the Minister of Finance to investigate whether Bitcoin is a ponzi scheme in the wake of its volatile price nature, and the potential rise of its by citizens within their economy.
Kirit Somaiya, a Member of Parliament of the ruling BJP in India, has raised concerns about Bitcoin being a Ponzi scheme. The rapid rise of Bitcoin has attracted attention in India, coming as it does during the government’s experiment with demonetization.
Dr. Somaiya has written to the Finance Ministry, the Reserve Bank of India and the SEBI (Securities and Exchange Board of India) on the increasing use of an unregulated currency in India. The finance minister is expected to officially reply shortly.
Speaking in the Parliament, Kirit Somaiya said:
“The use of Bitcoin, a hypothetical currency, is increasing at a rapid speed in India as well as in the world. Experts have expressed concern that Bitcoin is a pyramid Ponzi-type scheme. This issue should be taken very seriously and there is urgent need to have a study on the development of Bitcoin in India. There is no regulator. As it is functioning like currency and seems like Ponzi scheme, RBI and SEBI as well as Finance Ministry to take appropriate step to save the people from another big Ponzi fraud.” – Coin Telegraph
India has embarked over the past few months on a policy towards creating a cashless society, and banning the use of cash in many transactions. And the advent of a decentralized currency like Bitcoin is an anathema to Prime Minister Modi’s agenda to try to control every aspect of the nation’s spending through the implementation of a digital monetary system.
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