Dear Readers,
It is yet another strong message by the Reserve Bank of India's ( Indian Central Bank) Governor Mr. Sakthikanda Das told that Cryptocurrencies do not have any underlying value and it needs to be banned. He shared this in a business and banking Summit in Mumbai.
He said that every asset comes with an underlying value in it. But the Crypto has underlying value at all. It is purely on gambling and 100% speculation.
Citing to the November 2022, FTX collapse, the RBI's Governor pointed out his concerns on the future of this currency, which could be dangerous for the economy. Speaking at the event, he said, "Dollarisation would increase due to rising crypto usage and may act against the country's sovereign interest". It is due to the cryptocurrencies are trading in dollar pairs.
He added that the so-called crypto assets have the potential to become a means of exchange. If you allow it to grow, assuming 20% of transactions in the economy through crypto, which is not issued by the central bank, the RBI being the monetary authority will lose control over the money supply in the economy which is a worrisome factor. He mentioned that "If crypto is allowed in India, the RBI may likely fail in monitoring the transactions."
He deliberated that "Crypto masquerading as a financial asset is a completely misplaced argument,". While counting crypto as a form of gambling, the Governor described, "India does not promote gambling, and if people still want to continue investing in it, lay down proper rules for the same.
He further claimed, "Crypto is not a financial product but pure gambling, and called for an outright ban on it."
The Governor's remark considered an important alert as the preparations of India's Budget for the financial yea 2023-2024 are underway.
This is not the first time the Governor of Reserve bank of India issued this time of alert. He has been continuously warning the people and bat for a complete ban of crypto assets. He once compared Cryptos as the tulips and now he said that the crypto values are not even a Tulip value.
The Indian Government has been continuously working on a crypto bill for many years.
Currently India has imposed a 30% tax and 1% TdS on every crypto trades Neither India has regulated cryptos nor legalised it as well.
As India heads the G20 as of now, In last October, Nirmala Sitharman, Indian Finance Minister expressed her take on discussing crypto regulation at the G20 Summit to launch a technology-driven regulatory framework for crypto assets.
Let's wait the Indian Budget on how India takes on Cryptocurrencies!
