Shaktikanta Das, governor of the Reserve Bank of India, has recently passed some disparaging comments on digital currencies in general. On Thursday, February 10th, Das posited that digital currencies threaten India’s macroeconomic and financial stability, and weaken the county’s capacity to cope with both issues. In his own words:
“Private cryptocurrencies or whatever name you call it are a threat to our macroeconomic stability and financial stability and financial strategy. They will undermine the RBI’s ability to deal with issues of financial stability and macroeconomic stability.”
Das described digital currencies as worth not even a tulip and opined that they had no underlying value. According to media reports, he further advised would-be investors of digital assets to proceed with caution.
Das comments are a familiar repeat of sentiments toward crypto that has reverberated throughout the mainstream institutional space. However, the comments take on added weight this time because they come only days after the Union Budget imposed a 30% tax on profits generated on these assets.
The government’s move to tax profits generated on digital assets was met with acclaim from players in the crypto space. This is because according to these crypto participants, such a move “legitimizes” their industry.
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