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On Thursday, after announcing the monetary policy rates, Reserve Bank of India (RBI) Governor Shaktikanta Das, said that cryptocurrencies are a big threat to the financial and macroeconomic stability of India.
"I think it is my duty to tell investors that when they are investing in cryptocurrencies, they should keep in mind that they are investing at their own risk. They should keep in mind that these cryptocurrencies have no underlying (value). Not even a tulip."
Asked about the central bank digital currency (CBDC), that is, Digital Rupee, Das said that the RBI was moving carefully and cautiously.
Finance Minister Nirmala Sitharaman had earlier announced that any income from the transfer of 'virtual digital assets' would be taxed at 30 percent. She had also announced that RBI was working on a digital currency.
This tax regime will effectively apply to cryptocurrencies like Bitcoin, Ether and Dogecoin, and non-fungible tokens (NFTs).
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