Indian billionaire investor Rakesh Jhunjhunwala said the country’s regulators should ban cryptocurrencies like bitcoin.
The investor, sometimes known as India’s Warren Buffett, said he “will never buy bitcoin”.
“I think it’s speculation of the highest order. I don’t want to join all the parties in town. I think the hangover is much worse,” he told CNBC’s “Street Signs Asia” on Tuesday.
Bitcoin had a spectacular run in 2021 and has increased by more than 90% so far this year, according to data from Coin Metrics.
These strong gains were attributed in part to increased bitcoin adoption by major investors and companies, including Elon Musk’s Tesla and Bank of New York Mellon.
Indian regulators have yet to make a decision on bitcoin and other cryptocurrencies, but there is widespread speculation that the government is planning to ban all virtual private currencies and launch its own official digital currency.
I think regulators should intervene and ban bitcoin. And they must focus on the digital rupee.
Rakesh Jhunjhunwala
Partner, Rare Enterprises
Jhunjhunwala said India’s regulators have a role to play in keeping bitcoin out.
“I think regulators should step in and ban bitcoin”, said the investor who is currently a partner in asset management company Rare Enterprises. “And they should focus on the digital rupee.”
High in India
Regarding the prospects for the country, he was optimistic and he said he believes India will make a strong recovery based on the government’s recent political reforms and initiatives in the recent budget.
“I think we now have a resurgence in India. The Indian budget has transmitted that the government will do what needs to be done in terms of policies and reforms. All of these things will come together,” he added.
During the recent budget release, Finance Minister Nirmala Sitharaman announced plans to increase capital investment and implement financial sector reforms to support India’s battered economy after the pandemic-induced slowdown.
She also said that India will need to borrow 800 billion rupees ($ 10.96 billion) in the next two months with the bond market.
The billionaire predicted that India will see strong growth next year as the country recovers from the pandemic.
“I think India is in the last phase of Covid-19,” he said, adding that the country is expected to grow between 10% to 11% next year.