Indian billionaire investor Rakesh Jhunjhunwala said the country’s regulators should ban cryptocurrencies like bitcoin.
The investor, sometimes called Indian Warren Buffett, said he would “never buy bitcoins.”
“I think it’s first-rate speculation. I don’t want to join all parts of the city. I think the hangover is much worse,” he told CNBC’s “Street Signs Asia” on Tuesday.
Bitcoin had a spectacular run in 2021 and rose more than 90% so far this year, according to Coin Metrics data.
These strong gains have been attributed in part to the increase in bitcoin adoption by large investors and companies, including Elon Musk’s Tesla and the Bank of New York Mellon.
Indian regulators have not yet made any decision on bitcoin and other cryptocurrencies, but it is speculated that the government plans to ban all private virtual currencies and launch its own official digital currency.
I think regulators should step in and ban bitcoin. And they should focus on the digital rupee.
Rakesh Jhunjhunwala
Partner, rare companies
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 firm Rare Enterprises. “And they should focus on the digital rupee.”
Bullish in India
On the prospects of the country, he was optimistic and he said he believes India will make a strong recovery based on reforms and policy initiatives taken by the government in the recent budget.
“I think we now have a resurgent India. The Indian budget conveyed that the government will do what needs to be done in terms of policies and reforms. All these things will come together,” he added.
During the recent budget release, Finance Minister Nirmala Sitharaman announced plans to intensify capital investment and implement financial sector reforms to support India’s battered economy following the pandemic-induced slowdown.
He also said India will have to borrow 800 billion rupees ($ 10.96 billion) in the next two months in the bond market.
The billionaire predicted that India will experience strong growth next year as the country recovers from the pandemic.
“I think India is in the final stages of Covid-19,” he said, adding that the country is likely to grow between 10% and 11% next year.