Indian Finance Minister Nirmala Sitharaman stated in the Monday press conference that the finance ministry and the Reserve Bank of India (RBI) are on the same page on crypto and other issues and that there has been complete harmony between the two entities in recent years.
As noted in The Economics Times report, both RBI and the government are working together, respecting each other’s domains, and understanding what they have to do with each other’s priorities.
The Indian Finance Minister went on to say, “Whatever the government does we consult and have discussions with the Reserve Bank of India and therefore we take calls. So, if we were to tax 30% and then also go and discuss GST and everything else I would be tying RBI’s hands if I hadn’t even talked with them…There is a level of partnering with each other that is happening.”
Both the finance ministry department and RBI is working together in the nation’s interest. “There is no turfing here,” the FM noted.
RBI Governor Shaktikanta Das also stated that the central bank and the government are discussing the crypto issue and he will not be able to elaborate further about this.
Das added, “Like several other issues, this particular issue is internally under discussion between RBI and government. Whatever points we have, we discussed with the Govt. Beyond that I think I will not like to further elaborate.”
Private cryptocurrencies, according to Das’s recent statements, pose a threat to the macroeconomy and financial stability, undermining the central bank’s ability to deal with financial challenges. Das stated that such assets have no underlying value, “not even a tulip.”
Even so, instead of a total ban, the FM included a provision in the budget to impose a 30% tax on crypto, fueling speculation that the RBI and the government are at odds and Das’s opinions on cryptocurrency is proof of that.
