Bitcoin, Ethereum or NFT will never become legal tender: Finance Secy | Business News,The Indian Express

“Bitcoin, Ethereum or NFT will never become legal tender. Crypto assets are assets whose value will be determined between two people. You can buy gold, diamond, crypto, but that will have not have the value authorization by government,” news agency ANI reported quoting Somanathan.

Explaining his point, the Finance Secretary said that people who invest in private crypto should understand that it does not have the authorisation of government and there is no guarantee whether their investment will be successful or not. One may suffer losses and the central is not responsible for the same, he added.

Bitcoin, Ethereum or NFT will never become legal tender. Crypto assets are assets whose value will be determined between two people. You can buy gold, diamond, crypto, but that will have not have the value authorization by govt: Finance Secretary TV Somanathan

— ANI (@ANI) February 2, 2022

Clarifying the concerns over crypto and digital currency, Somanathan said that the digital currency will be backed by RBI, 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,” ANI reported citing Somanathan.

The finance minister in her Budget 2022 speech on Tuesday had announced a 30 per cent tax on income from virtual digital assets. She said that there has been a phenomenal rise in such transactions and the magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.

She clarified that no deduction in respect of any expenditure or allowance shall be allowed while computing such income except the cost of acquisition. Additionally, she also proposed a TDS on payment made in relation to the transfer of virtual digital assets at 1 per cent above a monetary threshold.