Cryptos are not even worth a tulip: RBI Guv Shaktikanta Das

TIL Desk/Business/Mumbai/ Reserve Bank Governor Shaktikanta Das on Thursday said cryptocurrencies are a “threat to macroeconomic and financial stability” and cautioned investors against punting on them, days after the Union government’s move to tax the gains made from cryptocurrency trades.

In the Union Budget for 2022-23 presented in Parliament on February 1, the government proposed levying a 30 per cent tax on gains made on cryptocurrency trades by investors and the announcement was welcomed by cryptocurrency industry players, saying it legitimises their trades.

Das invoked the 17th century ‘tulip mania’, widely considered to be the first financial bubble, to caution investors, saying the cryptocurrencies do not even possess the value of the exotic flower. The latest comments from the Reserve Bank of India (RBI) Governor are also a reiteration of institutional concerns on crypto assets.

“Private cryptocurrencies or whatever name you call it are a threat to our macroeconomic stability and financial stability. “They will undermine RBI’s ability to deal with issues of financial stability and macroeconomic stability,” Das told reporters.