The Indian government and regulators are skeptical about the use and enforcement of private cryptocurrencies in the country. Authorities demanded a 30% tax on capital gains from crypto trading in India. However, the head of the Reserve Bank of India also issued a warning about the next financial crisis. India currently holds the presidency of the G-20. Here are the details…
RBI Chairman: “Our view is that it should be banned”
Shaktikanta Das, Governor of the Reserve Bank of India, has predicted that the next financial crisis will come from “private cryptocurrencies” if their regulation is allowed and they are not banned outright. Das said the following on the subject:
Our view is that it should be banned. Because if you try to regulate it and let it grow, please remember my warning that the next financial crisis will come from private cryptocurrencies. There is no underlying value. It has great inherent risks to our macroeconomic and financial stability. I have yet to hear any credible arguments for what public good or what public purpose it serves.
The head of the Reserve Bank of India (RBI) had previously stated that cryptocurrencies should be banned. These comments gain importance at a time when the country holds the presidency of the G-20 and gives it the mandate to set the agenda. Indian Finance Minister Nirmala Sitharaman has stated that how to regulate crypto assets should be an international priority. She also said it will be a big topic of discussion during the G-20 presidency, she said.
Confidence in the cryptocurrency ecosystem has been damaged
According to sources, RBI’s delegation of more than 20 people has been attending these G-20 meetings in India for the past few days, where different countries present their views on how the space will be organized. Das also added:
Countries take different views. After the developments over the past year, including the last chapter on FTX, I don’t think we need to say much more about our stance. It’s not a question of offering competition to a dedicated cryptocurrency or fear of missing out. I think this is how the world will evolve. You will see more central banks embrace cryptocurrencies in the coming days and India is at the forefront of the digital revolution this century.
As we have reported as cryptokoin.com, RBI reported on December 1, 2022 that it has started the pilot phase of the Central Bank Digital Currency (CBDC) / Retail digital Rupee. The observer will test the placement of secondary market transactions. Meanwhile, the Indian government imposes a high tax rate on retail crypto trading. For this reason, it continues to receive heavy criticism from the citizens. However, the cryptocurrency markets are about to leave behind a year of rather poor performance. Frauds and bankruptcies have severely damaged trust in cryptocurrencies. The statements made by the President of RSI also supported the downward momentum.
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