RBI Governor of India: Cryptocurrencies have no fundamental value, not even a tulip

The Governor of the Reserve Bank of India, Shaktikanta Das, said in a press conference that cryptocurrencies have no fundamental value and that they “are not even equal to tulips”, warning investors about the risks of this type of currency, this emerging asset.

Das’s comments come just over a week after India’s central government announced a plan to impose a 30% tax on crypto asset earnings, as well as a 1% TDS (withholding tax at source) on crypto asset transfers .

The term “tulip mania” – derived from the 17th-century Dutch tulip bulb market bubble – is often used to describe large economic bubbles when asset prices deviate from their fair value.

In a recent analysis, JPMorgan put the fair value of Bitcoin at $38,000, about 13% below the current trading price.

The Central Bank of India plans to launch its own digital currency sometime in the next fiscal year, starting on April 1.

The RBI has consistently opposed crypto trading in India, even attempting to block banks from preventing transactions through a circular issued in 2018 that was later overturned by the Supreme Court.

In another development, like Bitcoin Magazine As reported this morning, India’s finance minister has stated that the country currently has no plans to legalize or ban cryptocurrencies and a decision will be taken after consultations with the ministry.

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