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Bitcoin, other virtual currencies like Ponzi schemes: Finance Ministry warns investors

  • In India and globally, the finance ministry said, the online currencies don’t have any intrinsic value and are not backed by any kind of assets
  • RBI from time to time has also clarified that it has not given any licence or authorisation to any entity to operate such schemes or deal with Bitcoin or any virtual currency
  • NEW DELHI: The government on Friday cautioned investors to be wary of virtual currencies like Bitcoin, saying they are like Ponzi schemes with no legal tender and protection.
    “There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes,” the Finance Ministry said in a statement.