On Thursday, the Reserve Bank of India (RBI) governor Shaktikanta Das made it clear that private cryptocurrencies are a threat to macroeconomic and financial stability and undermine its ability to deal with challenges on the two fronts. Cautioning investors, the central bank’s governor said such assets have no underlying whatsoever, not even a tulip. The Union Budget put a 30 percent tax on gains made on cryptocurrencies earlier this month.
Cryptocurrencies will undermine the RBI’s ability to deal with issues of financial stability.
“Private cryptocurrencies, or whatever name you call them, are a threat to our macroeconomic stability and financial stability. They will undermine the RBI’s ability to deal with issues of financial stability and macroeconomic stability,” the RBI governor told reporters. He added that it is his duty to caution investors and told them to keep in mind that they are investing at their own risk. Using a historical context to point out the value of such instruments, the governor said, they also need to keep in mind that the cryptocurrency has no underlying, not even a tulip.
Taxing cryptocurrencies legitimizes the industry.
Earlier, the finance ministry of India had announced a 30% tax on crypto. Proponents of cryptocurrencies accepted the formal tax framework as it would spare the crypto industry from some of the more draconian measures that the government had been considering. As reported earlier, India’s central government had been planning to outlaw cryptocurrencies completely. The finance minister has officially announced a 30% tax on cryptocurrencies, which is giving the industry acknowledgment. However, tax consultants reckoned individuals could end up paying more than 30% of their crypto profits in tax and other charges.