Government's stand on public and private cryptos-Clarity needed
Buying cryptocurrency is NOT an investment. It is just a form of gambling using the volatile nature of these currencies. Can people not gamble using Forex transactions? Yes, they can, but there are a host of regulations around such trading and it is not for your average johnny. Also the extent of volatility is minuscule. But crypotos are much more easy to buy and sell. And those who buy them for other than gambling are people who want to hide their illegal transactions using the anonymity that cryptos offer. So recognising cryptos as an asset class (and taxing them) is not in the overall interest of the country because they are not traceable at all unlike other assets/ investments.
Even if RBI comes up with its own cryptocurrency, transactions and identity of the people making the transactions must be tracked similar to other banking instruments. If possible, transactions should be restricted between banks (both domestic and foreign) so that any outgo of INR can be monitored and unusual movements reported. Otherwise, it will create another parallel economy. Does GOI want that? more