India has been one of the few countries to express hostility towards cryptocurrencies, seeing it as a threat to the country's economy. In a public speech a few months ago, Indian Prime Minister Narendra Modi expressed the government's stance against decentralized finance. Amidst skepticism about centralized digital currencies, the recent budget announcement confirms that India will indeed release its own cryptocurrency.

In an interview following the announcement, India's Finance Minister TV Somanathan expressed some disheartening views on cryptocurrencies. He firmly asserted that Bitcoin, Ether or any other cryptocurrency project will never become legal tender in India. Since these currencies are privately priced, the Indian government will never authorize them as legal tradable assets. He encourages investment in diamonds, gold and other commodities as they are centrally priced and authorized by the government.

Since the government does not intervene, there is no guarantee of returns for cryptocurrencies such as BTC or ETH. Moreover, the government will not be responsible for any losses faced as a result of such investments. So before investing in cryptocurrencies, you should be aware of its risks; furthermore, if you want to invest in Bitcoin, you can click here for expert advice. The hostility also extends to irreplaceable tokens, as their policy covers anything created using cryptocurrency means. This basically means that any asset that is not produced under a central authority will never become legal tender in India.

On the other hand, Finance Minister Nirmala Sitharaman's budget announcement mentioned the Indian digital rupee. This digital currency will be issued by the Reserve Bank of India, and the finance minister seems to be extremely confident about this "cryptocurrency". He claimed that it would be the safest option for anyone interested in digital currency trading.

The currency will be created, issued and supervised by the Reserve Bank of India, but the nature of the currency will be digital. The interview emphasized that this digital currency will be the only one recognized as legal tender and that any project will be forever outside the boundaries of Indian legality. Another important announcement that saddened the cryptocurrency community was the taxation of income through virtual currencies. The tax rate on cryptocurrencies is set at 30%. The tax policy also applies to all other speculative income, such as betting and gaming.

However, given the daily volatility of the market, investors are unsure how these policies will be implemented. Even gifts given through these virtual currencies are said to be subject to a 30% tax policy. These policies are very detrimental to the cryptocurrency community and market in India. Experts say that these policies are meant to drive the upcoming launch of digital currencies by the Reserve Bank of India. We will have to wait and see how this will affect the value of cryptocurrencies in the market.