Indian billionaire investor Rakesh Jhunjhunwala has said that the country’s regulators should ban cryptocurrencies such as bitcoin.
The investor, sometimes called Indian Warren Buffett, said he “will never buy bitcoin.”
“I think it’s the highest speculation. I don’t want to join every party in town. I think the hangover is much worse,” he told CNBC’s Street Signs Asia on Tuesday.
Bitcoin has had a spectacular evolution in 2021 and has grown by over 90% so far this year, according to Coin Metrics.
These strong gains have been attributed in part to the increased adoption of bitcoin by large investors and companies, including Tesla’s Elon Musk and Bank of New York Mellon.
Indian regulators have not yet made a decision on bitcoin and other cryptocurrencies, but there is widespread speculation that the government intends to ban all private virtual currencies and launch its own official digital currency.
I think regulators should step in and ban bitcoin. And it should focus on the digital rupee.
Rakesh Jhunjhunwala
Partner, rare enterprises
Jhunjhunwala said India’s regulators have a role to play in keeping bitcoin.
“I think regulators should step in and ban bitcoin.” said the investor who is currently a partner in the asset management company Rare Enterprises. “And it should focus on the digital rupee.”
Bullish on India
As for the country’s prospects, he was optimistic as well 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 returning India. The Indian budget has 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 statement, Finance Minister Nirmala Sitharaman announced plans to step up capital investment and implement financial sector reforms to support India’s battered economy following the pandemic-induced slowdown.
She also said that India will have to borrow 800 billion rupees ($ 10.96 billion) in the next two months from the bond market.
The billionaire predicted that India will have a strong growth next year, as the country returns from the pandemic.
“I think India is in the final phase of Covid-19,” he said, adding that the country will likely grow between 10% and 11% next year.