Bitcoin, Ether and NFTs will 'never become legal tender' in India, says Finance Secretary
T.V. Somanathan, the finance secretary for the Indian government, is reportedly pushing back against the narrative that cryptocurrencies will be widely accepted in the country — by dismissing the possibility of using them as legal tender.
According to a Wednesday tweet from Asian News International, Somanathan said that a digital rupee backed by the Reserve Bank of India, or RBI, will be accepted as legal tender, but major cryptocurrencies have no chance of doing so. The finance secretary added that because digital assets including Bitcoin (BTC) and Ether (ETH) do not have authorization from the government, they will likely remain “assets whose value will be determined between two people.”
“Digital rupee issued by RBI will be a legal tender,” said Somanathan. “Rest all aren't legal tender, will not, will never become legal tender. Bitcoin, Ethereum or NFT will never become legal tender [...] You can buy gold, diamond, crypto, but that will have not the value authorization by government.”
Digital currency will be backed by RBI which will never be default. Money will be of RBI but the nature will be digital. Digital rupee issued by RBI will be a legal tender. Rest all aren't legal tender,will not,will never become legal tender:Finance Secy TV Somanathan(File pic) pic.twitter.com/Cko0e4753X
The finance secretary added:
Somanathan's words followed Indian finance minister Nirmala Sitharaman announcement on Feb. 1 that the country planned to launch a central bank digital currency, or CBDC, by 2023, adding it could provide a “big boost” to the digital economy. She also proposed that transactions on digital assets be taxed at a rate of 30%.
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