The cipher is now hanging in a mysterious state, like the epic Trishanku swargam. It is not officially marked as immature or accused of being contraband or illegal like narcotics.The government should let people invest in them using their own judgment
Treasury Minister Nirmala Sitharaman has become public with the RBI counsel to ban cryptocurrencies. This is not the first time the RBI has recommended this course. This issue seems to be in the minds of the government and loggerhead turtles. On the other hand, the government is wise to feel that bans can be counterproductive.
In budget 2022-23, the Minister of Finance referred to the new section 115BBH and imposed a 30% plus tax on profits from cryptocurrencies. This caused the tax Greenhorn to wonder if she was legal. She wasn’t. One of the basic norms of income tax is that illegal pollution does not isolate transactions from tax.
Read again: Cryptography is proceeding as intended — South
Therefore, badly-reputed homes are subject to income tax as much as reputable hospitals. The former adopts the cash-only principle, and the latter is hidden behind a long-standing exemption from income tax granted to charitable trusts, so it is another matter that neither pays tax in our country. Of course, corporate hospitals have to pay. That may be the case.
Kryptos is now hanging in an epic and mysterious state Trishanks Wargum – Do not mark it as officially immature or blame it as a contraband or illegal as a drug. Now that the government’s commodity status is no longer in doubt, there is government talk that it could impose a 28% GST on cryptocurrencies.
This is the way forward. Do not take unnecessarily moral or sacred attitudes unless the product or service has the effect of dehumanizing society. Prostitution and narcotics stand out as unquestionable examples. The world is obsessed with the view that you don’t have to frown on gambling. France thumbs up on human innate gambling instincts with some reasonable restrictions, such as not allowing workers to be placed in dangerous locations near factories to prevent them from blowing their salaries. I am.
It’s like our own system – keep the liquor store closed on payday. Gujarat and Bihar alone are two states in India that have been completely banned, but both are more dangerous alcoholic beverages, such as hotfooting neighboring states to absorb the banned potions. We know that we are energizing the smuggling industry and drinking slyly. Bihar, in particular, must be ruining that decision, as it can be made with significant income from this product. Liquor and cigarettes were the Minister of Finance’s favorite whiplash boys.
Let people decide
So let people invest in Bitcoin and its clones. Have them simmer in your own juice. Did you ban day trading on the stock exchange for both rich and lazy purposes? Is it pure gambling at the end of the day, given the fact that you can’t change the view of buying what you took in the morning by disowning it like a double take in the afternoon? Governments should not make decisions about people’s investment and spending decisions beyond the formulation of fiscal policies to encourage or prevent certain activities.
Large-scale democracy does not cause confusion by making cryptocurrencies competing fiat currencies. Elon Musk’s interest in Bitcoin has wiped him and his company Tesla from their feet – why not accept Bitcoin in exchange for an electric vehicle sold by Tesla? This idea sprouted by the authorities giving a dark hint of disapproval.
For example, if Tesla had a high price on a $ 50,000, say $ 100,000 car, and would have accepted only two Bitcoins, all the hell would have been unleashed. Its downhill course, testing under $ 20,000, unleashed the Himalayan ratio accounting and tax nightmares.
RBI mint digital currency
So far, the Government of India has followed wise policies. The worldview that crypto can participate in the romantically assigned categories of paintings, sculptures and crafts is not a mistake. Of course, they are also used in peer-to-peer transactions for payments. However, we are working on the Central Bank Digital Currency (CBDC). This can be likened to a sterilized liquor hawked by TASMAC in Tamil Nadu with the support of the state government, rather than a national liquor.
However, the RBI makes it clear that official digital currencies are valued at the same rate, so we are not content with investor gambling instincts. That is, 1 rupee is 1 rupee, a period, whether or not it is a CBDC. Or regularly. Unlike Bitcoin, you can’t find that level in the raging market. It may certainly be a damp squib for speculators. But those who want to play it very safely may be plump for it, as unlike commercial banks, they never give up their promise to pay.
Such bland products will appeal to those who are concerned about the security of bank deposits, especially after the experience of PMC banks. The digital rupee is mounted on RBI’s balance sheet and protected by invincible and impregnable blockchain technology.
But experts are worried about the downside. As long as the Indian Rupee is digitized as described above and owned by RBI, the amount that banks can lend will be small. Moreover, in return for security, people have to sacrifice profits.
The CBDC is still an ongoing work around the world and has its advantages in the area of the concept of safety wool. Bitcoin is grateful to investors for increasing its rarity value, as its mining is limited to 21 million coins and 90% of it has already been mined. Gold also thrives on the value of its rarity, but it is concrete and sparkling. Bitcoin does not have these attributes and is the product of a virtual world where no one is kicked or the soul is corrupted.
(The writer is a qualified CA who writes about business, consumer issues, and financial law.)
(The federal government seeks to provide views and opinions from all sides. The information, ideas, and opinions in the article belong to the author and do not necessarily reflect the views of the federal government.)