More credible answers are needed on what contribution private cryptocurrencies will make to the Indian economy with more credible explanations, RBI Governor ShaktiKanta Das said on Thursday. The governor was addressing the question around India’s take on cryptocurrencies ahead in an online session organised by The Indian Express and the Financial Times. Shaktikanta Das said “We have conveyed our serious and major concerns to the government about cryptocurrencies from the point of view of financial stability. It is now for the government to take a decision.”
“I think we need more credible answers as to whether going forward, what contribution private cryptocurrencies will make to the Indian economy going forward. We need to be convinced with more credible explanations and answers,” Shaktikanta Das said.
The Governor had earlier also on multiple occasions highlighted RBI’s concerns with cryptocurrency adoption in the country. Post monetary policy meeting in June, Das had said RBI’s view on cryptocurrencies is unchanged that it has ‘major concerns’ on crypto trading. Likewise in February and March as well, Das had voiced ‘major concerns’ on cryptocurrencies to the government.
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Meanwhile, the country is moving towards introducing a cryptocurrency bill to regulate digital currencies in the country. Last month, Finance Minister Nirmala Sitharaman had told reporters in an interaction that clearance from the Cabinet is awaited on the bill. “Cabinet note is ready on cryptocurrency bill. I am awaiting Cabinet to clear that,” Sitharaman had said.
The former Deputy Governor of RBI R Gandhi at an event earlier this week had said that crypto needs to be treated as a foreign asset and should be taxed on the basis of its payment channels. “It should be paid through normal channels when it is bought otherwise it will be deemed as mined and capital gained and taxed heavily. This will be a voluntary disclosure. Then if it is proved mined, capital gained and taxed is likely. It should be fully tracked through depository or repository of information about that. Then exchanges can facilitate trade – buy and sell – and settle payment and received. This should be on DVP basis i.e., Delivered vs Payment rather than Payment vs Payment. In this fashion the exchanges can be regulated by SEBI,” Gandhi had said.
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