The Ministry of Finance of India claimed that Bitcoin and other digital currencies are "like Ponzi schemes". them, in a statement issued this Friday.

The Ministry added that cryptocurrencies lack "intrinsic value", as well as support for all assets and "mere speculation" is the only reason their prices continue to rise

In his statement, the department reiterated that there is a real and increased risk of an investment bubble in the cryptocurrency market similar to Ponzi schemes. This can lead to an immediate and prolonged crash where investors, especially retail consumers, could lose all their hard-earned money.

Part of the statement reads:

"There is a real and increased risk of investment bubble of the type seen in Ponzi schemes which can lead to a brutal and prolonged accident exposing investors, especially retail consumers losing their hard earned money.Consumers should be vigilant and extremely cautious in order to avoid being trapped in such ponzi schemes. "

The Government of India has yet to put in place regulations covering the digital currency market.

Committee members included the country's central bank, the Reserve Bank of India (RBI).

Meanwhile, the Indian Supreme Court issued an appeal to the government in November to begin drafting a regulatory framework to "control the flow of Bitcoin" in the country.

Despite his last warning, the Ministry of Finance has not put in place a total ban on virtual currency. trading and has not announced any measures that will hinder the adoption and trading of digital currencies in India.