India’s stance on cryptocurrencies hasn’t always been a good fit, and the Reserve Bank India Governor Governor Shaktikanta Das On Monday, May 23, he explained again. The Governor of the Reserve Bank of India said that the central bank has been warning for a long time about this Cryptocurrencyhas now crashed.
Shaktikanta Das People said that people would have raised questions after the crypto market crash if the Reserve Bank of India had been regulating digital assets even now. “We have been wary of cryptocurrencies and looking at what has happened to the crypto market now. If we were really regulating it, people would have raised questions about what happened to the regulation,” Das told CNBC TV18 in an exclusive interview.
“This is something whose core (value) is nothing. There are big questions about how it will be regulated. Our position remains very clear, and it will seriously undermine monetary, financial and macroeconomic stability in India,” the Reserve Bank of India governor added.
Recently, the global cryptocurrency market experienced a massive downturn as the world’s largest digital currency Bitcoin shed its value to trade at $27,000 earlier this month. That was a cut of more than 50 percent from an all-time high of $69,000. Bitcoin has been holding steady since then and hasn’t traded above the $30,000 level in days.
Shaktikenta Das also said that he thinks the position appears to be in sync with the central bank’s stance on worthless cryptocurrencies. The Reserve Bank of India (RBI) has said for some time that cryptocurrencies have no intrinsic value, with the governor saying they compare to “not even a tulip.”
We have conveyed our position to the government and you will receive a thoughtful call. I think the statements and statements from the government are more or less synchronized. Das said.
“I don’t want to respond to speculative remarks made by outsiders,” Shaktikanta Das said when asked about comments by US crypto exchange CEO Brian Armstrong. Armstrong recently said during the company’s earnings call that Coinbase was forced to disable the Unified Payments Interface (UPI) on its platform due to ‘informal pressure from the RBI’, days after its massive launch in India.
However, according to reports, the Reserve Bank of India has not imposed any specter on cryptocurrency exchanges. In its early days, when Bitcoin was slowly making its mark in India, the Reserve Bank of India planned to ban cryptocurrencies in India. However, a Supreme Court order in 2018 overturned its ban on cryptocurrencies, and the Reserve Bank of India has since maintained a tough stance on digital assets. She has repeatedly mentioned the impact of cryptocurrencies on the overall economy in India.
The government has also been reluctant to trade cryptocurrency altogether.
In a union budget submitted earlier this year, Finance Minister Nirmala Sitharaman proposed a 30 percent tax on trading in cryptocurrencies and related assets, with a 1 percent deduction from the source (TDS) when such transactions occur.