If cryptocurrency owners and investors in India had any doubt about the government’s intentions regarding private digital currencies, they can now be assured that their private crypto assets will never be legalised in India.
If at all, private cryptocurrencies are about to meet with stiff competition from what is currently being referred to as ‘Digital Rupee’, to be launched this fiscal year by the Reserve Bank of India using blockchain technology. Digital Rupee will be the only legal digital tender in the country, and it will have the government’s backing. Private cryptocurrencies are nearing the end of their run in India.
T.V. Somanathan, the finance secretary for the Indian government, made it clear that private cryptocurrencies like Bitcoin have no future in India. Somanathan said that a digital rupee backed by the Reserve Bank of India, or RBI, will be accepted as legal tender, but major cryptocurrencies have no chance of doing so. He added, “Rest all aren’t legal tender, will not, will never become legal tender. Bitcoin, Ethereum or NFT will never become legal tender…You can buy gold, diamond, crypto, but that will have not the value authorization by government.”
If private cryptocurrency owners and investors had any doubts about the government’s intentions still, here’s what the finance secretary also had to say: “People investing in private crypto should understand that it does not have the authorization of government. There is no guarantee whether your investment will be successful or not, one may suffer losses and government is not responsible for this.”
Time to Sell Bitcoin Now
Do you own Bitcoin? Well, it’s time to get rid of all such crypto coins now. They will soon turn valueless. Once Digital Rupee hits the Indian system, there is no guarantee that private coins like Bitcoin, Ethereum will hold any value. At that time, it will become impossible for Indian investors and crypto holders to win back the money they had put in to buy such coins. To top it all, they would have no legal recourse, and their finances will simply vanish.
Once Digital Rupee is launched with the solid backing of the government, a sea of Indians will turn to it, and that will immediately impact the fortunes of private coins in the country. Their value will evaporate, and they will become worthless. So, it makes sense for all crypto holders to sell their assets while they still can, and begin gearing up for the launch of India’s official digital currency that will use blockchain technology as well.
Read more: The dark side of Cryptocurrency that nobody is even thinking about
The digital rupee or Central Bank Digital Currency (CBDC) will give a big boost to the digital economy and India would be the first major country to officially launch its currency in such a manner. According to finance minister Nirmala Sitharaman, “Digital currency will also lead to a more efficient and cheaper currency management system.” So, India is indeed embracing digital currencies; just not the private ones that can be used for funding terrorism, effectuating corruption and employed in criminal activities of a wide colour palette.
To top it all, finance minister Nirmala Sitharaman on Tuesday announced a 30 per cent tax on any income from the transfer of virtual digital assets, specifying that no deductions and exemptions will be allowed. She said, “Any income from virtual digital assets is taxable at 30 per cent. There will be no deduction with exception of the cost of acquisition. The TDS is applicable beyond a specified monetary threshold, and the gift of virtual currencies is taxable in the hands of the recipient.”
Suddenly, cryptocurrencies don’t seem very lucrative, right? Well, there’s more.
Budget 2022 is Death for Cryptocurrencies
Private cryptocurrencies in India are about to die. Guess who has predicted so? None other than India’s market bull, Rakesh Jhunjhunwala. When Rakesh Jhunjhunwala says something like this, you sit up straight and take notes. Here’s what he told CNBC TV-18.
“I think what government wants to do is that it wants the Reserve Bank of India (RBI) to promote digital currency and kill all other currencies, just like China is doing, which in a way is the right approach also.”
Highlighting the point further, he explained that Budget 2022 has made RBI the sole authority capable of promoting digital currency, thereby killing all other cryptos in the process.
Therefore, it is no longer viable, leave alone profitable, to keep holding on to crypto coins. Their demise in India is now imminent, and it’s time for all holders and investors to get the baggage off their backs as soon as possible.
I wanted to write “most ridiculous piece of crap I’ve read in the past few days” but I instead realised that I shouldn’t be doing that to you, you’re an aspiring journalist and I don’t want to taint your morale by being a troll.
I however want to convey that your piece is highly misleading and the title is clickbait-y. We all want more audience for work but choosing the path you did isn’t ethical. I also highly recommend you redo your research upon the topic before influencing the masses with your opinion provided that’s an honest mistake and you don’t have an ulterior motive behind deliberately misleading people.
This is probably the most stupid crap i have read in a while. Whoever wrote this, please do some research about cryptocurrencies before writing bullshit like this. Ethereum or any other private crypto’s aren’t going anywhere. You ever heard of blockchain? Most coins run on ethereum blockchain which gives it usecase. Ever heard of metaverse? So many big companies are pouring millions into metaverse coins. Private cryptocurrencies may not be legalised in india but who cares? As an asset, Bitcoin and ethereum aren’t going anywhere
Sorry, to say, but a very much misleading article lacking proper homework and reasearch and that also in such a platform. Who cares wheather cryptos like BTC and ETH are legalised in India? They are very much going to stay alive like Gold and silver do upto the end of this world and a lot more remains for the Indian financialsystem jugglers to digest the whole blockchain technology so quickly and come up with a GODLY digital currency overnight and Wipeout all others. LOL.
Agreed. The author actually has no idea what they’re writing about or maybe the Finance Minister from India is incorrect. Bitcoin is about to be taxed at 30%, the Indian Government knows Bitcoin is here to stay.
Furthermore, Government issued crypto is no different to Government issued bank notes, just so much more controlled and trackable. Any person comparing Government issued digital currency to something like Bitcoin has a fundamental misunderstanding on how these two things are so dramatically different.
Based on GYAN you are having in this article, I think earlier you leave journalism better it will get for your future.
Regards
I’m no cheerleader for Bitcoin but this article is utter nonsense. Bitcoin doesn’t have to be legal tender anywhere to have value. A Picasso isn’t legal tender, so it must be worthless, right? And please explain how taxing crypto capital gains in India make a globally traded asset like Bitcoin worthless?
This is the dumbest shit I have ever read, you mans must have like 0iq. Do some research and find out what crypto was even made for, and who it was targeted to.
Such a poorly informed writer. NGMI
Good lord, this site seems to be getting more pathetic and intellectually vaccuous by the day. There’s a guy in here who wants to be Ra’s Al Ghul🤦. It’s best one reads Swaragyamag or Sai Deepak on twitter as opposed to these clowns for understanding the Indic perspective.
Those who have invested in cryptos should retain crypto assets. They will soon realise the impact. Some are wise enough to decide before slide begins. Those wise ones will be surely corporates & they will ensure positive rally before quitting
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