RBI governor cautions on crypto trade, says ‘it is threat to financial stability’
RBI governor’s comment also backs the statement of Finance Secretary TV Somanathan. Somanathan, on February 2, had made it clear that RBI is planning to issue a digital rupee.
New Delhi: In the latest development in the crypto news in India, Reserve Bank of India (RBI) governor Shaktikanta Das briefed the media on Thursday. In his briefing, Das today raised the concern of those who earn profits by investing in cryptocurrencies.
The RBI governor said that cryptocurrencies are a threat to the financial stability of India’s economics. He added that it would create a dangerous situation for the country’s macroeconomic.
”Cryptocurrencies will undermine the RBI’s ability to deal with issues of financial stability and macroeconomic stability,” said Shaktikanta Das.
Das compared the risk of investing in cryptocurrencies to a tulip. He said these assets have ”no underlying, not even a tulip”.
He also cautioned everyone who invests in cryptocurrencies saying they are investing at their own risk.
However, some people on the internet criticised the RBI governor Shaktikanta Das’ statement on cryptocurrencies.
The RBI governor’s comment on the digital rupee backs the statement of Finance Secretary TV Somanathan. He said the RBI will launch its digital rupee in the year 2022-23.
RBI Digital Rupee will be launched in the year 2022-23. We can’t predict a timeline for its release yet. There’ll be no difference between Digital Rupee & the normal rupee. Cryptocurrency is privately created & it is a threat to financial stability: RBI Governor Shaktikanta Das pic.twitter.com/sTFrsvl8j1
— ANI (@ANI) February 10, 2022
Somanathan, on February 2, had also made it clear that RBI is planning to issue a digital rupee. It will be a legal tender and ”rest all are not legal tender, will not, will never become legal tender”, added the Finance Secretary.
Digital currency will be backed by RBI which will never be default. Money will be of RBI but the nature will be digital. Digital rupee issued by RBI will be a legal tender. Rest all aren’t legal tender,will not,will never become legal tender:Finance Secy TV Somanathan
(File pic) pic.twitter.com/Cko0e4753X
— ANI (@ANI) February 2, 2022
Somanathan has also cautioned people that the government will not be responsible if anyone suffers a loss due to the investment in private crypto.
People investing in private crypto should understand that it does not have the authorisation of govt. There is no guarantee whether your investment will be successful or not, one may suffer losses and govt is not responsible for this: Finance Secretary TV Somanathan
— ANI (@ANI) February 2, 2022
It is important to note that the government has announced that a 30% tax will be levied on the income from virtual digital assets. The announcement was made by Nirmala Sitharaman in her budget speech on February 1.
Moreover, the government will charge 1% TDS on the transfer of virtual assets.