Wednesday, November 30, 2022

Cryptocurrencies Are Like Pirates World Says Chief Economic Advisor

Cryptocurrency News: Cryptocurrency is setting new heights in the world and in many countries it is being treated like currency. But the Chief Economic Advisor of India feels that it is like a world of pirates. In fact, it has not yet been seen meeting the test of India’s currency. This is the reason why such things are being done for this.

The country’s Chief Economic Adviser V Anantha Nageswaran said that regulating cryptocurrencies will also be difficult. Comparing cryptocurrency to fiat currency, he said that fiat is a government-backed currency and rests on the public’s trust in the government rather than a precious metal.

Cryptocurrencies do not meet all these basic requirements

He also said that unlike fiat currency, cryptocurrencies cannot meet the basic requirements like inherent value, wide acceptability and monetary unit. According to the chief economic advisor, cryptocurrency is like a world of pirates where the winner takes away everything.

Referring to decentralized finance, Nageswaran said, “Although it is considered innovation, I will reserve my judgment whether it is really innovation or is it something we will regret.” He said at an ASSOCHAM event that he agreed with RBI Deputy Governor T. Ravi Shankar. According to Nageswaran, he says that cryptocurrencies and decentralized finance seem to be less a matter of financial innovation and more a matter of regulatory mediation. He said that new financial innovations like crypto or decentralized finance are yet to pass many tests.

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Consultation paper on cryptocurrencies almost ready

Economic Affairs Secretary Ajay Seth has said that the central government has almost prepared the consultation paper on cryptocurrencies. He said that there should be a global consensus on cryptocurrencies. According to Seth, India will look into the steps taken by other countries before regulating cryptocurrencies. He said that soon this consultation paper will be presented.

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How much tax has India imposed on cryptocurrency,

In the budget for the financial year 2022-23, the Government of India had imposed a tax of 30 percent on profits from cryptocurrency transactions. However, cryptocurrencies are not yet recognized by the government in the country. India differentiates between crypto asset and cryptocurrency. Regarding tax, Finance Minister Nirmala Sitharaman, while presenting the budget, had said that in addition to 30 percent tax on profits, 1 percent TDS will also be deducted. The tax on crypto came into effect from 1 April.

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