Rajeev Chandrasekhar, an Indian government official, spoke about cryptocurrency at an event in Bengaluru. He is a minister for electronics and information technology, as well as for skill development and entrepreneurship. He stated that as long as laws are followed, India has no problem with cryptocurrencies. However, the Indian government has not yet established regulations for it.
The government has mentioned that international collaboration would be necessary for effective legislation, and the finance minister plans to discuss regulations with G20 countries. Although India already taxes crypto income at 30% and imposes a 1% TDS on crypto transactions.
The Reserve Bank of India, however, has recommended a complete ban on cryptocurrencies like bitcoin and ether, as the governor believes they do not have any underlying value and would undermine the authority of the bank and lead to the dollarization of the economy. He even expects crypto to cause the next financial crisis if it is not banned.
In February, a high-ranking official at the Reserve Bank of India (RBI), T. Rabi Sankar, compared cryptocurrencies to fraudulent schemes, and suggested that a ban would be the best course of action for India. Furthermore, the Governor of the Reserve Bank of India, Shaktikanta Das, stated that cryptocurrencies have no underlying value, even less than a tulip in the same month.
