Indian Central Bank Governor, Shaktikanta Das, wants crypto to be banned. He has repeatedly spoken against cryptocurrencies and their negative effect on India’s economy. In fact, the Reserve Bank of India (RBI) has equated trading cryptocurrencies to gambling. Shaktikanta believes that if they do not ban crypto, it will undermine the authority of the RBI, which is supposed to be the most powerful monetary body in the country.
RBI is against crypto
India has never been a crypto-positive nation. Currently, there is a 30% flat tax rate levied on profits made on crypto transactions. At the same time, there is no loss setoff allowed which makes things very difficult for traders. But if that was not enough, now the RBI wants crypto to be completely banned in the country.
One of the Media houses of the country, India Today, reported that Shaktikanta Das, the governor of RBI said, “RBI’s position on crypto is very clear — it should be banned.” He believes that crypto doesn’t have any underlying value and is a speculative investment. So, he doesn’t agree with people who call crypto an asset or a financial product.
Since the chief of RBI looks at crypto as a speculative product, it also means that they equate investing in it directly to gambling. That is also one of the reasons that a 30% tax rate was levied on its gains. He also said that India doesn’t support or allow gambling, so if the authorities want to do so, they need to have rules in place.
Crypto poses risks to the Indian economy
The RBI governor also believes that crypto is also risky for the Indian economy. That’s because RBI is likely to lose control over the money supply in the country if cryptocurrencies take off. There is also a chance that the economy will become dollarised because most crypto trades are paired with USD. This will be completely against the country’s interest and should be controlled now. So, either India could ban crypto or bring a regulatory framework that solves all these problems while allowing the industry to flourish in India.
What are your thoughts as Indian Central Bank Governor wants crypto to be banned? And do you think the authorities will do this? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: Report says SBF ordered Gary Wang to open a $65B credit line for Alameda.
