Irrespective of what the world may say...
The governor of RBI or the Reserve Bank of India has been a severe critic of crypto.
It is not the first time that he has opposed the idea of crypto.
In a recent statement he has once again lashed out and raised his concerns about crypto.
He sees and minces no words in describing crypto as "Clear Danger" and he further goes on to say and I quote that
"anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name."
This statement comes at a time when the government is in the process of finalizing a paper on cryptocurrencies.
It is stated that inputs are being taken in from various stake holders. however such premeditated and fixed views from senior officials do not auger well with the fate of crypto in India.
The 25th issue of FSR
The 25th issue of the Financial Stability Report or FSR as it is commonly referred to in the media, Mr Shaktikanta Das has remarked in the forward of the detailed report that as the financial system gets more and more digitized the cyber risks are growing and there is the need for giving this issue special attention.
RBI has been anti crypto forever
Back in 2018 too RBI had made similar statements. However this time round the crypto markets are already beaten down and in the grip of the bears.
30% Tax and 1% TDS is already strangulating the market
If the current slow down and correction was not bad enough traders of crypto in India are already facing severe taxation on cryptos.
These are indeed testing times for crypto
The crypto evolution has seen many testing times and every time crypto has emerged stronger.
However along this evolutionary path there have been instances where the early adopters have had to pay the price and that is the part being played out in India and so many places where crypto is not exactly welcome or is being opposed by those who sit in responsible positions in the govt. and are involved in the decision making process.
Could this kill crypto?
So many countries including China have tried to kill the crypto industry but have failed.
The loss of opportunity in terms of job creation in India and being part of a Sunrise Industry may become an opportunity that gets grabbed by some other country.