Making a strong case for an outright ban on cryptocurrencies, the RBI on Tuesday said that they can neither be treated as currency, asset nor commodity. The central bank also said that advanced economies have not banned them out of self-interest and they can be used to gain global strategic control.

In the strongest attack against cryptocurrencies by the central bank, RBI deputy governor T Rabi Sankar said that banning cryptocurrencies is perhaps the most advisable choice open to India. “We have examined the arguments proferred by those advocating cryptocurrencies should be regulated and found that none of them stand up to basic scrutiny,” said Sankar. He was speaking at the annual banking technology conference of the Indian Banks’ Association. According to Sankar, it may not be adequate from a regulatory point of view to treat cryptos as just another type of currency or asset or commodity but also as a potential social movement.

Highlighting the risk that these currencies can be used for strategic control, Sankar said that almost all cryptos are priced in terms of dollars and are not a threat to convertible currencies. They are also owned by businesses of advanced economies and better adoption of cryptocurrencies add to their growth and these businesses would stand to gain by the adoption of cryptos in emerging markets.

Sankar also said that cryptos cannot be treated as assets as they have no underlying and do not show up as anyone’s liability and nor could they be classified as a commodity and likened them to Ponzi schemes. “The fundamental risks of cryptocurrencies are two they are intended to be private currencies and they are structured to evade government control with respect to financial integrity standards,” said Sankar. “Even Ponzi schemes invest in income-earning assets,” said Sankar.