The Reserve Bank of India (RBI) has once again cautioned investors about the risks posed by private cryptocurrencies in India. In a press conference held after the announcement of monetary policy, RBI Governor Shaktikanta Das said that private cryptocurrencies are a threat to the country’s economy and financial stability.
The RBI governor cautioned the investors that investors who are investing money in these assets by taking risk should always keep its risks in mind. He said, “The RBI’s stand on private cryptocurrencies or whatever you call it, is very clear. It is a threat to our macroeconomic and financial stability. These cryptocurrencies tackle financial stability and other important issues of the economy. We will undermine the capability of RBI.
Cautioning investors, Shaktikanta Das said, “It is my duty to inform investors that the money they are investing in cryptocurrencies should keep in mind that they are investing in it at their own risk. There are no underlight assets to support the assets. Not even a tulip flower.” Assets that do not have any underlying assets backed by them can collapse at any time and investors can lose their holdings forever.
Shaktikanta Das has given a clear message to the government through this statement that there is a need to be careful in recognizing crypto and allowing investors to invest their hard earned money in these assets.
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Let us tell you that the government in the budget has proposed to levy 30% tax on earnings from virtual digital assets like bitcoin and ethereum. In addition, buyers will also have to pay a TDS of 1% on the purchase, sale or transaction of any such asset. The move by the government was seen as the first step towards recognizing cryptocurrencies.
Digital Rupee will be same as Physical Rupee
Presenting the budget, Finance Minister Nirmala Sitharaman also said that the RBI will launch its own digital currency or digital asset of cryptocurrencies. Giving information about this, RBI Deputy Governor T Rabi Shankar said, “Digital rupee will be exactly like physical rupee. The value of both will be equal. That is, you will get one digital currency for one physical currency. The difference between the two is only.” So much so that while you can touch the physical currency, the digital currency will remain in your cell phone device. The difference between private cryptocurrency and digital currency is that digital currency will be issued by RBI.”
The crypto industry estimates that there are 15 million to 20 million crypto investors in India, with total crypto holdings of around Rs 40,000 crore ($5.37 billion). There is no official data available on the size of the Indian crypto industry.
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