Looking at the tug of war that cryptocurrencies and Reserve Bank of India (RBI) have been into for many years, it’s not an easy task to predict if they will ever go together. Time and again, RBI has made it loud and clear that cryptocurrency can’t take place of fiat currency in India i.e. INR. This matter became so grave that even the Supreme Court of India had to mediate and ruled in favour of the cryptocurrencies. However, not much has changed even after that decree. The stance of the banks’ bank remains absolutely anti-cryptocurrency. This is quite evident from its dialogues held with financial institutions and the finance ministry.
Nirmala Sitharaman, minister of finance, has echoed the sentiments of the RBI on more than one occasion. Even the 30% tax levied on the earnings from digital assets is very much indicative of the measures that RBI has always been wanting the central government to take. When the 30% tax was announced by Sitharaman, crypto enthusiasts raised a notion that the central government had finally taken cognizance of the rising power of crypto in India. They became sure that the government would soon bring a law to make cryptocurrency a part of the financial system in India. However, Sitharaman has always made it loud and clear that 30% tax doesn’t give cryptocurrencies the legal status. Rather the government was levying tax so as to dissuade people from putting their hard earned money into some ponzi scheme in the name of digital assets.
RBI and the finance ministry have been equivocal about dissuading people from investing their money in currencies that are very volatile. To conclude, it won’t be a tough call to say that so far RBI has not hinted at alleviating the stance that it has had for years against cryptocurrencies. In the near future, we are likely to see its stance remain the same. Cryptocurrency and RBI will ever go together, only time will tell.
