Cryptocurrency vs Government of India (Central Bank)

Today I will be sharing general or personal opinion on Cryptocurrency in India - 

Is Indian government want to enable / allow crypto in India ?

• No, Because Crypto currency is a decentralised currency and any government body or authority don't have control on it. Hence it become hard to control countries economy in case of inflation and deflation.     

Is crypto making any losses to government or commercial banks ?

• Yes,  One of the best example is - ' Credit Creation of Commercial Banks ', Crypto is decentralised and any individual can makes his / her choices about it. Now a days many platform offering higher rate or return for holding crypto in their platform or investing. 
• In this situation what happens people take their money from bank and invest it in crypto, This affects on credit creation because most people taking out their money from bank, Bank will not be having more deposits to lend money or for other activities to generate money from peoples deposits. 

Why Government has imposed 30% tax on crypto in 2022's Budget ?

• Before 2020 there was problem while dealing with crypto - People were unable to make transaction between bank and crypto due to Central Bank's guidelines. But as result of SC (supreme Court) in 2020 considering public interest people are able to make all their transaction through bank to crypto without any restriction except transaction limit (Which is certain in every bank).  

Central Bank and Crypto ?

• As a central bank of India RBI is trying to stop crypto in India because it's not good or stable for financial economy. 
•  Recently RBI Governor has said that " It's my duty to tell the investor who invest in cryptocurrency to keep in mind that they are investing at their own risk and also need to keep in mind that the cryptocurrency has no underlying value, not even a tulip". 

Investment in crypto - 

• Investment in cryptocurrency is profitable but at higher risk, If market goes down you will either have to face the loss or wait until market goes up and for these kind of activity you will need extra money to handle your personal expenses so that you can not give up or exchange your invested money.

PS - I'm not discouraging people investing in cryptocurrency, Just putting facts. And coins like BTC really have potential to give returns on peoples investments in long term (considering demand and supply + other factors).