![Crypto Currencies Have No Underlying Value, Says RBI Official – News18 Crypto Currencies Have No Underlying Value, Says RBI Official – News18](https://webastros.com/wp-content/uploads/https://images.news18.com/ibnlive/uploads/2024/01/image-9-2024-01-f80a037cc09c65e0ee6e214ba0ab2df5-16x9.jpg?impolicy=website&width=1200&height=675)
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![Currently, bitcoins have no legal backing in India and investors have to pay a tax on the income earned by trading in them. Currently, bitcoins have no legal backing in India and investors have to pay a tax on the income earned by trading in them.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=356)
Currently, bitcoins have no legal backing in India and investors have to pay a tax on the income earned by trading in them.
RBI has been critical of new-age currencies like bitcoins, saying they pose systemic risk to the financial systems.
Crypto currencies cannot be referred to as “currencies” as they have no underlying value, a central bank official said.
The Reserve Bank of India (RBI) has been critical of new-age currencies like bitcoins, saying they pose systemic risk to the financial systems.
“Crypto currencies cannot be called currencies as they don’t have any underlying value,” P Vasudevan, an executive director at the RBI, said during a panel discussion organised by IIM-Kozhikode here.
Ultimately it is a call that the government has to take on how to tackle crypto currencies, the official said.
Currently, bitcoins have no legal backing in India and investors have to pay a tax on the income earned by trading in them.
In the backdrop of the action against Paytm Payments Bank and curbs imposed on some international card providers, Vasudevan said self-regulation can protect the fintech sector better.
He also said that mechanisms could be looked at to highlight bad behaviour.
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