Mumbai: Reserve Bank of India Governor Shaktikanta Das has clarified that private cryptocurrency poses a threat to macroeconomic and financial stability and challenges on these fronts. This weakens his ability to deal with it. The governor also cautioned investors that such properties have no inherent value, not even the equivalent of a ‘tulip’.
The Reserve Bank of India (RBI) has already expressed its concern over such properties. But this time, this remark is important because the recent Union Budget has talked about imposing a 30 percent tax on gains on such properties. The move was welcomed by crypto stakeholders, as it gives ‘legitimacy’ to their business.
Das told reporters, “Private cryptocurrency or whatever you call it, it is a threat to our macroeconomic stability and financial stability. They will undermine the ability of the RBI to deal with issues related to financial stability and macroeconomic stability. He said it is their “duty” to caution investors, and they should keep in mind that they are investing at their own risk.
Das further added, “They also have to note that there is no inherent value in cryptocurrencies, not even the equivalent of a tulip.” Significantly, the ‘tulip frenzy’ of the 17th century is often cited as an example of an unusual financial boom, where the price of something rises greatly due to speculation, not the underlying value.
