- India’s Finance Secretary stated that digital assets including Bitcoin will never become legal tender in the country.
- The Finance Secretary further emphasized that cryptocurrencies do not have the government’s backing.
- The nation recently proposed a 30% tax on cryptocurrencies and NFTs.
The Finance Secretary in India, T.V. Somanthan stated that cryptocurrencies including Bitcoin and Ethereum will never become legal tender in the country. Only the digital rupee issued by the Reserve Bank of India (RBI) will be a legal tender.
India will not follow El Salvador’s footsteps in adopting Bitcoin
India’s Finance Secretary has declared that cryptocurrencies including Bitcoin, Ethereum and non-fungible tokens (NFTs) will never become legal tender in the country.
India has recently revealed plans to introduce a central bank digital currency (CBDC), the digital rupee, which will be backed and issued by the RBI, which would “never default.” The Finance Secretary added that only the digital rupee will be a legal tender, while the “rest all are not legal tender.”
India’s central bank has been testing its CBDC in the nation for several months to examine its impact on the banking and monetary systems. India’s Finance Minister Nirmala Sitharaman stated that the introduction of a CBDC will lead to a more efficient and cheaper currency management system while boosting the digital economy.
Somanthan added that cryptocurrencies’ values are “determined between two people,” and similar to diamonds or gold, it does not have the “value authorization by the government.”
The Finance Secretary further warned citizens in India that those who invest in cryptocurrencies should understand that it does not have the “authorization of the government.” He added that those who invest in the new asset class could suffer losses that the government is not responsible for.
While India has struggled to decide whether to ban cryptocurrencies for years, no such ban has been put in motion. However, a 30% tax on digital assets was proposed on income from the transfer of any crypto assets.
However, the nation’s Finance Minister proposed a 1% tax deduction at source on payments created in relation to the purchase of digital assets.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.