Governor of the Reserve Bank of India Shaktikanta Das During a press conference, she stated that it was private Digital currencies pose a major threat to the country’s macroeconomic and financial stability. RBI Governor Das said: “Regarding cryptocurrencies, the RBI’s position is very clear. Private cryptocurrencies represent a major threat to our financial and macroeconomic stability. They will undermine the ability of the RBI to deal with issues related to financial stability.” .
RBI has been critical of cryptocurrencies because it believes there is no intrinsic value in a digital asset. In the case of the stock market, there is an underlying action but in cryptocurrency, there is only an algorithm. The RBI The governor has said on numerous occasions that he has indicated concern about financial stability.
The Governor of the Reserve Bank of India (RBI) clarified his stance on crypto investments during the press conference on Thursday. He said: “I think it is my duty to tell investors what they are investing in cryptocurrencies, they should keep in mind that they are investing at their own risk. They should keep in mind that these cryptocurrencies have no underlying (asset). Not even a tulip!”
The RBI governor’s comments come days after Union Finance Minister Nirmala Sitharaman, in her 2022 budget speech, announced the imposition of a tax, dubbed a ‘crypto tax’, on gains on virtual assets. The minister said that a 30 percent tax will be imposed on the transfer of digital assets. Although the finance minister emphasized that taxing assets does not legitimize them, industry observers believe clarity on tax policy is the first step towards regulation.
The Reserve Bank of India also said that the digital rupee is similar to the paper rupee, only the form will be electronic or digital. Deputy Governor Trap Sankar said it would be 1 to 1 transferable. Only it will be digital in nature. Like regular rupees kept in your wallet or pocket, digital rupees will be kept in your cell phone device.
“Like the way you keep paper rupees in your wallet, digital rupees will be held in the machine. There is no difference between the two. The only difference between digital rupees and cryptocurrencies is that the former will be issued by the Reserve Bank of India. Like the rupee note, this will also be a part of Responsibility The RBI Deputy Governor said during the virtual meeting that cryptocurrencies are privately created products.
Talking about the timeline, the governor said that RBI Digital Rupee will be launched in the year 2022-23.
Earlier, FM Sitharaman said during his budget speech that the Reserve Bank of India (RBI) will launch a central bank digital currency (CBDC) in 2022-23, which is the first official statement from the Union government on the long-awaited launch of the currency. digital currency. She added that the introduction of the central bank digital currency will give a boost to the digital economy.