Crypto Will Not be A Legal Tender in India — Rather It Can be Banned
Future of cryptocurrency is still a billion dollar question for investors in India. Earlier it was came to know that during the Winter Session of Parliament, government will declare their final decision; however, they postponed the bill.
Later on Union Budget, the Finance Minister, Ms. Nirmala Sitharaman said that government will impose 1% TDS as well as 30% income tax on cryptocurrency transaction. While crypto traders were preparing to celebrate the news, Ms. Sitharaman said that government hasn’t still legalized the crypto coins, neither have banned; it’s just collecting tax from the profit as it’s ‘sovereign right’ of the nation.
But, last day, RBI Governor of India said that it is best to ban cryptocurrency in India as it will affect the economy badly in the long run and can ruin life of many people being a volatile asset.
As per Deputy Governor T Rabi Sankar of RBI, cryptocurrencies are no how better than the ponzi schemes and it can cause severe loss to people. He warned that government should take faster steps against this currency banning as it can badly impact on the Indian economy.
As per Shaktikanta Das, the RBI Governor, these type of digital currencies can be a huge threat to any macro-economy and can affect financial stability in a growing country like ours. So, he also suggested that cryptocurrency should be banned in India.
The Finance Secretary T V Somanathan said on Monday that India has the one and only legal tender, that is India Rupee controlled by RBI. Cryptocurrency can’t ever be accepted as a legal tender in India as a mean to settle any debt or to make payment for any goods or service.