RBI Deputy Governor Likens Cryptocurrencies With Ponzi Schemes, Calls For Ban; Bitcoin Up 5%

Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar says cryptocurrencies are akin to ponzi schemes, have no underlying cash flows; Bitcoin was up by 4.47 per cent and Solana gained 10.59 per cent.

Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar has called for an outright ban on cryptocurrencies in India, calling them ponzi schemes, Livemint reported. He also stressed on the need to keep cryptocurrencies away from the formal financial system.

“Cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flows, they have no intrinsic value; they are akin to Ponzi Schemes, and may even be worse,” Sankar said, while addressing an event on Monday.

Meanwhile, the global crypto market rallied heavily due to bargain hunters buying various cryptocurrencies at low prices. The market rose by 4.68 per cent at $1.95 trillion. The crypto trading volume too surged by 15.07 per cent at $72 billion at 8.43 am, as per Coinmarketcap data.

Bitcoin, the world’s oldest cryptocurrency, saw its prices surge by 4.47 per cent to $43,562.74.

Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, saw its price increase by 6.37 per cent to $3,027.10.

"Ether is trading slightly above $3,000 and other major altcoins are following a similar bullish pattern. DeFi tokens, meme coins, metaverse coins are in the green as well," says Gaurav Dahake, CEO and founder, Bitbns.

Among other major coins, Cardano (ADA) was up by 5.34 per cent at $1.08, Algorand (ALGO), which is known as the Ethereum killer, was up by 5.38 per cent at $0.9254; its market cap was at $6,128,424,032. Binance Coin (BNB) was also up by5.34 per cent at $413.15, while Solana (SOL) was up by a massive 10.59 per cent at $101.64 and Polkadot (DOT) by 5.87 per cent at $19.23.

Today’s top gainer was Green Chart (GREEN), which is up by 987.47 per cent at $0.00001894. The top loser was Valentine Floki

(FLOV), which is down by 63.99 per cent at $0.000000001054.

Meme Coins And DeFi

Dogecoin (DOGE) was up by 2.55 per cent at $0.1488. Its volume to market cap ratio stands at 0.03789. Rival Shiba Inu (SHIB) was also up by 4.29 per cent at $0.00003052.

Elon Musk replied with a winking eye emoji to a user’s tweet post, which asked that now that Tesla is accepting DOGE payments for merchandise, can Starlink and SpaceX too do the same.

Dogelon Mars (ELON) was trading with a gain of 3.49 per cent at $0.0000009666. Floki Inu (FLOKI) was also up by 7.4 per cent at $0.00004015, while Samoyed Coin (SAMO) declined by 0.21 per cent at $0.02347.

In the DeFi segment, YFI (yearn.finance) was trading with a gain of 4.43 per cent at $23,713.06. While Terra (LUNA) was up by 4.01 per cent at $55.09, Avalanche (AVAX) was up by 9.5 per cent at $84.34. Uniswap (UNI) gained 7.17 per cent at $10.97, while Aave (AAVE) climbed 6.37 per cent at $165.76.

Latest Updates

Development Bank of Singapore (DBS) may start its retail digital assets trading desk by the end of 2022. CEO Piyush Gupta said in an interview with Coindesk that they already have the digital assets trading desk live with institutional clients for a year and are now trying to open up that desk for retail. He was quoted as saying, “We are starting the initial work to expand it beyond the current investor base. Lots of work to do with suitability and anti-fraud.”

Bandai Namco, the famous Japanese Game developer, has become the latest entrant to the metaverse world. It has announced a new Intellectual Property (IP) called ‘Metaverse IP’ with an initial investment of $130 million. Not only this, it also talked about its strategy for the next three years, which they call ‘IP axis strategy’. “On an IP axis, Bandai Namco will develop a metaverse for each IP as a new framework for connecting with fans,” the developer said in its report.

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