I think RBI governor did not consider many scenarios, he says "ban is unlikely to be effective is a superficial argument", i believe banning would be ineffective because that will at any rate see a flight of untraceable capital to safer havens. Those who have made impressive gains wont sit there hoping to get crashed and burnt. If the government is after taxes they have to legalize it, if they are after power to arbitrarily exercise monetary easing well tough luck technology trumps bad actors and arbitrary systems.
