The Indian authorities maintain a negative attitude towards digital currencies. Back in April, the head of the country's financial department, Nirmala Sitaraman, said that such tools are mainly used by criminal structures.
The Reserve Bank of India believes that the massive transition to cryptocurrencies will lead to a decrease in the share of the dollar in the state economy. The authorities are not interested in this, said representatives of the regulator who were present at the hearings in the parliamentary Finance Committee.
The cost of all cryptocurrencies is determined by the dollar. These instruments are produced by private individuals. If the state allows the free transition of businesses to digital assets, then the share of the US currency in internal and external settlements will sharply decrease, and this will only worsen the financial situation of India.
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In addition, the regulator fears that the position of the national currency the rupee will also be shaken. To mitigate possible risks, the Reserve Bank decided to accelerate the creation of a national digital currency (CBDC).
Recall that in April 2022, a system of taxation of crypto traders began to operate in India. The tax rate reaches 30%, which has already caused a negative reaction from holders of digital currencies.