Reserve Bank of India says ‘NO’ to Crypto?

India has been brewing for many days whether to agree to crypto or not. Crypto influence and popularity have been increased in many countries. Cryptocurrency is gaining worldwide acceptance. Prices of cryptocurrencies surged like Bitcoin, Ethereum, Dogie, and Shiab have shown tremendous value. As per the report, India has the highest number of cryptocurrency owners in the world at over 100 million. Many Indians are expecting that the Indian government will give approval for cryptocurrency. Right from the beginning, the Reserve Bank of India (RBI) has repeatedly reiterated its strong views against cryptocurrencies.

RBI Governor Shaktikantha Das has believed that crypto will destabilize the Indian economy. Mr. Das has once again warned that cryptocurrencies could pose a serious threat to the country's financial stability. He also said that while it is true that there has been a significant increase in trading, the number of accounts is surpassing the actual number. Prime Minister Narendra Modi convened a special meeting on cryptocurrencies a few days ago to discuss. Many were believed that crypto allowed with proper control. RBI feels that many countries may follow El Salvador in the future, but by and large, the major countries of the world are against it.

As per the Supreme Court judgment, citizens have the right to trade virtual currencies with Indian Rupee. That’s the reason RBI is allowing transactions only because of the Apex Court judgment but endorsed cryptocurrencies. Another valid point that RBI quoted is, Rupee based savings like Provident Fund will fall if Indian invest in digital currencies. It was very difficult for the Indian government to levy tax on income from crypto since it was unregulated. RBI has believed that cryptocurrencies caused more white color crimes and scams. RBI governor has shared his views on crypto but India is still unable to decide on digital currency.