The Indian government and regulatory bodies have expressed skepticism over the use and adoption of private digital assets in the country. Authorities have already suggested that capital gains from cryptocurrency trading in India will be subject to a 30% tax. The governor of the Indian Central Bank has, nevertheless, issued a cautionary statement regarding the coming financial crisis.
A financial crisis is predicted by the RBI chief.
Shaktikanta Das, RBI Governor, spoke about the recent collapse and developments in the crypto industry at the BFSI insight Summit. He did, however, warn of the next possible financial crisis, which will be caused by private digital assets.
Das went on to say that he still believes digital assets should be illegal and that they should be prohibited. Meanwhile, he added that the cryptocurrency has no intrinsic value. Private digital assets pose significant threats to macroeconomic and financial stability.
The RBI Chairman discussed the recent decline in the cryptocurrency market, highlighting the major FTX collapse. These incidents have proven to be a major supporter of the Indian authorities’ anti-crypto stance. Das, on the other hand, stated that any change in the value of a product is a function of the market. He stated that the purpose of cryptocurrency is to circumvent and disrupt the system.