India to launch its own digital currency..

[arunima25]

Cryptocurrency's future hangs by thread in India. It has been swinging between being legal and illegal. And so far nothing clear has come out from the government. Though many Indians are involved in cryptocurrency, there are many like me who refrain from it as there is no clear cut laws and views from the government. It has never been encouraged by the government. Off late, cryptocurrency discussions made headlines and government said that it would soon come up with a clear law and plans about it.
A couple of days back, Finance minister of India presented the annual budget for the country. And it was clearly mentioned that there would be tax charged on any crypto gains. Government made it clear that one has to pay 30 percent tax on any crypto gains that they make. Government was also very loud and clear that this doesn't imply that cryptos are legalised or got a legal tender in the country. So, that still discourages people to involve in cryptocurrency market.

However, there was a big announcement that India's RBI ( Reserve Bank of India), the central regulating bank would soon launch a digital currency of its own. It's announced that India will soon have its own digital rupee. And it should be a reality by April 2023. That currency would be a legal one. This digital currency would use Blockchain like other cryptocurrency.The rules and laws around that currency would be out later.
How should one look at this decision? Is it a beginning of crypto acceptance in India? Does this mean that the government is opening up towards accepting cryptos and legalising it with clear cut laws and regulations?
Share your views about the same.

 

[Yugocean]

Even though the Government of India has announced the implementation of its digital currency, but it has collapsed before it is implemented.
This budget full of 30% tax, 1% TDS, gift tax will have an adverse effect on this currency.

Since the government does not control the blockchain, it would not be possible to tax other cryptos, everything would be taxed on government crypto, and no one would use it.

 

[eldavis]

If am not mistaken, digital currency and crypto currency are two different things. The digital currency is just a digital version of the local currency, meaning it would also be backed by the local currency. If they plan on running their digital currency on Blockchain, I don't really know much about that, so let's see how it goes. My country also tried creating their digital currency and it failed big time, not even up to a week after it's launch.

 

[Yugocean]

If am not mistaken, digital currency and crypto currency are two different things. The digital currency is just a digital version of the local currency, meaning it would also be backed by the local currency. If they plan on running their digital currency on Blockchain, I don't really know much about that, so let's see how it goes. My country also tried creating their digital currency and it failed big time, not even up to a week after it's launch.

Politicians don't even know what they are doing, they just want to loot people without thinking right or wrong. They think people are too naive and will accept whatever the government will order, but now people started understanding the reality of their hidden selfishness, and no one wants to invest in something that is only to collect tax. Cryptocurrency is for economic freedom, not to be controlled by others.

 

[eldavis]

Politicians don't even know what they are doing, they just want to loot people without thinking right or wrong. They think people are too naive and will accept whatever the government will order, but now people started understanding the reality of their hidden selfishness, and no one wants to invest in something that is only to collect tax. Cryptocurrency is for economic freedom, not to be controlled by others.

That's right, gone are the days where people easily believe the lies the government tries to feed us with, they are against crypto currency cause they have no power over it and things like this are usually a threat to what they can gain from their positions.

 

[arunima25]

Even though the Government of India has announced the implementation of its digital currency, but it has collapsed before it is implemented.
This budget full of 30% tax, 1% TDS, gift tax will have an adverse effect on this currency.

Since the government does not control the blockchain, it would not be possible to tax other cryptos, everything would be taxed on government crypto, and no one would use it.

Government has said it loud and clear that they are going to put 30 percent tax on cryptocurrency gain. And that would start in this fiscal year. New digital rupee by RBI would be out by next fiscal year.
Tax evasion, money laundering and terror funding are few fears that are worrisome for any government and that's why many government around the globe don't legally back cryptos and are trying to bring out a good legal framework for it. And their concern are s legit. Even in the US, lawsuit and Bipartisan law is backed and that is to put tax on earnings through cryptocurrency. Any income in any country has to go through a legitimate way.

 

[Skysaint]

If am correct, I think this digital currency is very different from cryptocurrency. Well my country actually wanted to implement this, I mean the country's digital currency and I guess they have succeeded in it but citizens are not even bothered to learn how it works or how to make use of it.
Ever since my country launched their digital currency and banned cryptocurrency early last year, I haven't seen any growth in our financial sector. They just choose to do and focus on things that doesn't matter and neglect what is actually good for the country and her citizens.

 

[arunima25]

Politicians don't even know what they are doing, they just want to loot people without thinking right or wrong. They think people are too naive and will accept whatever the government will order, but now people started understanding the reality of their hidden selfishness, and no one wants to invest in something that is only to collect tax. Cryptocurrency is for economic freedom, not to be controlled by others.

I would agree there to some extent. But as far as my understanding of economics and finance of a country goes, a lot of factors go in that. Every citizen would like to earn more, save more or pay no or less tax on that. Buy is that possible in any corner of the planet and in any country. Bipartisan law and law suuts jn the US also talks about taxation on cryptocurrency. Well, a lot goes on the responsibility of government and other financial institution to control the flow of the money. Cryptocurrency does give financial boost to citizens but do you think that it should be not brought under any taxation and regulations. I would like you to please give your valuable suggestions about how the government should put a stop on all that they fear that this can bring...money laundering, unchecked corruption, terror funding etc to name a few. I mean no country or government should ignore these factors to please the financial gain that some will make. Any financial way has to be brought under a legal lense. Letting it be free and out of government control will do more damage to a country ( at least it has all the potential to do so). Don't you think that government brings it under legalities and taxation rule. That will make it legitimate and under all scrutiny scope for the fraudsters and defaulters.

If am correct, I think this digital currency is very different from cryptocurrency. Well my country actually wanted to implement this, I mean the country's digital currency and I guess they have succeeded in it but citizens are not even bothered to learn how it works or how to make use of it.
Ever since my country launched their digital currency and banned cryptocurrency early last year, I haven't seen any growth in our financial sector. They just choose to do and focus on things that doesn't matter and neglect what is actually good for the country and her citizens.

Many countries are contemplating on the status of cryptos..and they have been swinging between the decision of banning and not banning the cryptocurrency. Most government fear that cryptos might pause a threat to economy if not brought under legalities and taxation. And their concern is well justified. Free market out of government control can be a recipe of many dusasters in long run. Best would be to legalise these cryptocurrency brining in some good laws tat can keep the fears around cryptocurrency ( money laundering, corruption, terror and drugs funding etc.)at bay. This would also keep things clear for citizens and they might show more interest in crypto.
Our digital currency would be out by next fiscal year. Well, right now there is mixed reactions. Most economists have welcomed it. How well it would fare with common man needs to be seen. It would be more clear when the laws and rules are out around it..Right now it's in planning stage.

 

[Yugocean]

@arunima25
What you said is way too political.

Can you explain how much tax these politicians pay? They enjoy everything on the expenses of people, can't people save and use some for themselves too?

The importance of tax cannot be denied, but that should be reasonable, a tax that allows people to earn and take an amount which encourage legal trading, not discourage it. If too much tax is levied, then people will start finding ways to avoid it, there are already issues in other taxes, tax reforms are required, but politicians are trying to discourage only honest people from becoming part of digital economy.

 

[arunima25]

@arunima25
What you said is way too political.

Can you explain how much tax these politicians pay? They enjoy everything on the expenses of people, can't people save and use some for themselves too?

The importance of tax cannot be denied, but that should be reasonable, a tax that allows people to earn and take an amount which encourage legal trading, not discourage it. If too much tax is levied, then people will start finding ways to avoid it, there are already issues in other taxes, tax reforms are required, but politicians are trying to discourage only honest people from becoming part of digital economy.

I am sorry that you found it political. But then no where I gave a clean chit to politicians. I fail to see that in my post. You are too early to jump your guns.
I have in fact said that legalising it woukd he good.. it's loud and clear there in my post where I talk about it to be brought under legal scope. And taxation ( not a cruel one) would be a way to do it.
I just posted the issues that are feared to arise with an open kind of exchange with no goverment control. And I have asked for ideas to handle it. I just wanted to understand it better from people who are into it..You could have given some suggestions from your side. I was no way political or supporting any views there. Yes, I think any income beyond a slab has to be taxed and I spare no one there be it a politician or a farmer. You should read in between lines .

 

[Abigael]

I really wish that the Indian government could be clear about their stand on cryptocurrencies. So that the Indians can make a decision on whether to engage in them or not. I wonder what is making them to hesitate on making a decision just yet. But the fact that they are taxing them shows that there could be something positive coming.

I hope that they will legalize the cryptocurrencies as legal tender like other countries have down. That way, people can have a good investment option to get into. Which will also increase the cryptocurrency market cap hence being beneficial to global crypto investors. The regulation will also make the cryptocurrencies safe since it will do away with most scams and crimes done using cryptocurrencies.

The country seems to be really clear about the Central Bank Digital Currency. Which is also a great thing for the Indian citizens. At least now the traders can carry out the digital transactions fully. Which is so convenient for many. Especially now that many people are preferring to go cashless.

It seems that most countries are more ready to adopt digital currencies but are so skeptical about adopting cryptocurrencies. I wonder if they are worried that they will be more preferred than the digital currency and fiat currencies.

 

[arunima25]

I really wish that the Indian government could be clear about their stand on cryptocurrencies. So that the Indians can make a decision on whether to engage in them or not. I wonder what is making them to hesitate on making a decision just yet. But the fact that they are taxing them shows that there could be something positive coming.

I hope that they will legalize the cryptocurrencies as legal tender like other countries have down. That way, people can have a good investment option to get into. Which will also increase the cryptocurrency market cap hence being beneficial to global crypto investors. The regulation will also make the cryptocurrencies safe since it will do away with most scams and crimes done using cryptocurrencies.

The country seems to be really clear about the Central Bank Digital Currency. Which is also a great thing for the Indian citizens. At least now the traders can carry out the digital transactions fully. Which is so convenient for many. Especially now that many people are preferring to go cashless.

It seems that most countries are more ready to adopt digital currencies but are so skeptical about adopting cryptocurrencies. I wonder if they are worried that they will be more preferred than the digital currency and fiat currencies.

You have made the points so well. I had a similar discussion with my husband today evening. He works in a very renowned financial institution and has some good exposure to these things. And I am a naive.
I had the same concerns and idea like yours. Banning cryptocurrency or making it illegal is not possible for the government. It will be futile as many people are engaged in it. Giving a legal status to this would be good with strict rules and taxation that will keep a check on all the fears that government has.

 

[PassiveIncome4ack]

i think the biggest issue is Indian government thet don't clear about their stand on cryptocurrencies. So that the Indians can make a decision on whether to engage in them or not.

 

[arunima25]

i think the biggest issue is Indian government thet don't clear about their stand on cryptocurrencies. So that the Indians can make a decision on whether to engage in them or not.

Yes, that's a big concern. And they need to work on that. The sooner the better. India has a huge population and many are involved in cryptocurrency. So, government needs to give a legal status to the cryptocurrency. I am sure that they too know it well and must be contemplating on the issue. Making a kegal framework that is robust and sustainable will take some time. But government has to taje it seriously.

 

[joelryan175]

Yes, the Indian government plans to launch their own cryptocurrency. Maybe this year's end, they officially announced the news.

 

[joelryan175]

i think the biggest issue is Indian government thet don't clear about their stand on cryptocurrencies. So that the Indians can make a decision on whether to engage in them or not.

Indian govt officially pass the GO, last week. Crypto is completely legeal in india.

 

[arunima25]

Yes, the Indian government plans to launch their own cryptocurrency. Maybe this year's end, they officially announced the news.

The government has announced to launch a digital currency called digital rupee by nect fiscal year. They have said nothing about launch of cryptocurrency. It's loud and clear that the gains on cryptos would be taxed. Government's stand on legalisation of cryptocurrency in India is still not clear. Hopefully they make it clear soon.

 

[HayKay]

I think this is why majority of the world's most populous or bubbling economies clamp down on the use of crpytocurrencies. It's all in a bid to see that they have control over whatsoever currency that's going to be in use in their economies - hence the development of their e-currencies.
If they didn't go this route, they would have lost out because the acceptability of crypto is more than they think.

 

[arunima25]

I think this is why majority of the world's most populous or bubbling economies clamp down on the use of crpytocurrencies. It's all in a bid to see that they have control over whatsoever currency that's going to be in use in their economies - hence the development of their e-currencies.
If they didn't go this route, they would have lost out because the acceptability of crypto is more than they think.

Many countries are going for their digital currency as more and more transactions are moving towards cashless transactions. Un an era of digital transactions, digital currency is being welcomed by many countries.
And you are right about cryptocurrency. Their acceptability is much higher among the common people and more and more people are getting interested in it. But then the future of legal acceptance is not much clear in most nations. They are hanging in air and that's making many discouraged about the cryptocurrency. And the cryptos are so popular these days and so many people are involved there, a ban would not be accepted. Goverment around the world have to come with some legal rules around these cryptos and accept them. Let's see what future holds.

 

[arunima25]

Indian govt officially pass the GO, last week. Crypto is completely legeal in india.

Oh! I am not aware of it being legalised. Can you provide some link to the news. I watched the interview of the Finance minister after the budget where she was loud and clear that they have not made crypto available for legal tender yet. They have just put the cryptocurrency gains under taxation. They are still contemplating on the legal status. In fact she was very clear that people should not misunderstand that taxing it makes it legal. However, taxation on the cryptocurrency does make it clear that government has no sn to pose a ban on it. Hopefully, they might think lf it's legal status later.