Billionaire investor known as Indian Warren Buffet, Rakesh Jhunjhunwala, has expressed support for India’s impending cryptocurrency ban, warning that the Bitcoin (BTC) mania hangover will be worse than the party itself.
Jhunjhunwala, speaking on TBEN’s Asia street signs segment on Tuesday, said the Bitcoin night was one he would rather not attend:
“I think this is speculation of the highest level. I don’t want to join in on every party in town. I think the hangover is much worse.
The headache of that hangover was felt to some extent on Tuesday, as nearly $ 400 billion left the global cryptocurrency market cap. Bitcoin has lost nearly 20% of its value in hours, while a large part of the altcoin market has suffered losses greater than 30%.
It remains to be seen whether that means the Bitcoin bullish party is over for now or that investors will come back for a bit of the dog that bit them.
Regardless, Jhunjhunwala is eager to see Indian regulators automatically approve their ban on Bitcoin and other cryptocurrencies, and believes the country should focus on building its own central bank digital currency – the digital rupee.
“I think regulators should step in and ban Bitcoin, and they should focus on the digital rupee,” Jhunjhunwala said.
In mid-February, news broke of the Indian government’s impending blanket ban on all cryptocurrencies, with holders to be granted a grace period of three to six months to cash out their crypto funds.
Not everyone is as keen as Jhunjhunwala to see cryptocurrency banned in India. Former Coinbase CTO Balaji Srinivasan has expressed his own concerns about the ban, saying such a move would amount to banning the internet.
Other countries have already decided to ban the spread of cryptocurrencies. The Nigerian central bank recently issued a directive to all commercial banks directing them to stop doing business with cryptocurrency exchanges. This is despite, or perhaps because, that Nigeria is one of the busiest centers in the world for the use of Bitcoin – so much so that the Nigerian authorities have called it a threat to their own national currency.