Bitcoin, Ether and NFTs will ‘never become legal tender’ in India, says Finance Secretary

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According to an Asian News International tweet, Somanathan stated that a digital rupee, which is backed by the Reserve Bank of India (RBI), will be accepted as legal currency. However, major cryptocurrencies are not likely to do so. According to the finance secretary, digital assets such as Bitcoin (BTC), Ether (ETH), do not require authorization from government. Therefore, they will likely be “assets whose values will be determined between 2 people”.

Somanathan stated that the RBI will issue digital rupees as legal tender. Rest all are not legal tender and will not become legal tender. Bitcoin, Ethereum, and NFT will not become legal tender […] It is possible to buy gold, diamonds, crypto, but it will not have the value authorization from government.

RBI will back digital currency, which will never go out of business. The nature of digital currency will not be the same as that of RBI, but it will still be money. The RBI will issue digital rupees as legal tender. Rest all aren’t legal tender,will not,will never become legal tender:Finance Secy TV Somanathan (File pic)
— ANI (@ANI), February 2, 2022

The finance secretary said:

Private crypto investments should be understood that they do not require government authorization. It is impossible to predict whether or not your investment will succeed. One may also suffer losses, and the government is not responsible.

Somanathan’s remarks came after Nirmala Sitharaman, Indian finance minister, announced on February 1 that India would launch a central bank digital money (CBDC) by 2023. She also said it could give a “big boost to the digital economy.” She suggested that digital assets transactions be subject to a 30% tax.

Related: India misunderstands private crypto ban, claims crypto bill creator

Indian lawmakers previously proposed a bill to ban the use of “private cryptocurrency” in India. The Tuesday bulletin from India’s lower house of Parliament indicated that the bill was not being considered in its May budget session. Instead, the government announced that a training session would be held for lawmakers on crypto and its impact on the economy.