Recently, the Finance Secretary of India said that crypto and NFTs will never become legal tender in the country. His goal with this statement is to express that cryptocurrencies will never become a widely accepted entity in India. This is not the first time that such a statement has been made. Even in the past, authorities have said that India is much different from El Salvador and will not make crypto legal tender.
The stance of crypto in India
At this point, India has announced a 30% tax on crypto gains while not being able to offset it against losses. This is not investor-friendly but is a positive remark in the sense that a crypto ban isn’t happening. In the budget session, the authorities also announced the digital rupee which will be launched by the RBI in 2022-23. The Finance Secretary of India said that the Digital Rupee would be considered legal tender in India. And no other crypto will have any chance.
He also made it clear that Bitcoin and Ethereum, the two largest cryptocurrencies, won’t be backed by the government. It will stay as assets whose price is decided by what the people are willing to buy it for. The Finance secretary was also very serious about the fact that it’s not a matter of when, for BTC and ETH to become legal tender. They will stay assets like gold and diamond whose value isn’t authorized by the government.
The funny thing
The Finance Secretary added that while investing in crypto assets, one should know that there is no government authorization behind that. There is no guarantee of profits, and the government won’t be responsible for the losses. That’s right. While we all know this but the Indian authorities have gone a step ahead and taxed crypto in such a way that won’t allow traders to offset profits against losses.
Basically, it means your losses are your losses, and your profits are yours and the governments. While I am ranting about this here, I am optimistic that more favorable tax rates will be introduced in the future.
What are your thoughts as the Finance Secretary says that Crypto and NFTs will never become legal tender in India? And are you okay with the 30% tax they have introduced? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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