Crypto currencies have no underlying value, says RBI official (2024)

FAQs

Crypto currencies have no underlying value, says RBI official? ›

"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. Also Read | What to expect in crypto and blockchains in 2024?

The digital rupee is the RBI's accepted version of cryptocurrencies, which the central bank has dismissed repeatedly and called a serious challenge to the stability of the financial system of the country.

Binance, one of the world's biggest cryptocurrency exchanges, has officially registered with India's Financial Intelligence Unit (FIU-IND). This registration is significant because it allows Binance to operate legally in India by complying with local regulations, specifically anti-money laundering (AML) rules.

Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market. This is in contrast to national currencies, which get part of their value from being legislated as legal tender.

Crypto Indian Coin (CIC) is the token of the Crypto Indian platform. The total tax on the token is 10%.

The ₹90 commemorative coin issued to celebrate the 90 Years of Reserve Bank of India (RBI) is now available at the Sales Counter at India Government Mint's Corporate Office in New Delhi. The ₹90 coin, featured in the Proof Set and offered in Folder/Blister packaging, is priced at ₹4950 as of April 18, 2024.

Tokens can be used for online transactions, mobile point-of-sale transactions or in-app transactions. This token contains no personal information that can be directly accessed and keeps changing making it the most secure method to complete payments. OTP authentication will continue as an additional layer of protection.

A central bank digital currency (CBDC) is a form of digital currency issued by a country's central bank. It is similar to cryptocurrencies, except that its value is fixed by the central bank and is equivalent to the country's fiat currency.

Mudrex is the best cryptocurrency exchange platform, simplifying investing and trading cryptocurrencies with its intuitive UI, extensive crypto insights, and strong customer support. As one of the first FIU-registered crypto exchanges in India, Mudrex prioritises regulatory compliance and security for all its users.

Why does crypto have no value? ›

Products, services, wages, and salaries are not valued in bitcoin but in fiat currency. Bitcoin must be converted to a government-backed currency to be used, even in countries where it is recognized as legal tender. The argument here is that because Bitcoin is convertible, it doesn't have any underlying value.

It's backed by the government that issues it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government rather than the worth of a commodity backing it.

Crypto is unregulated by design. Banks don't want that. As far as they're concerned, funds made from crypto is as good as dirty money. Also people don't really pay any tax from crypto gains unlike stocks.

1. Bitcoin (BTC) The first on our list and the most obvious one is Bitcoin (BTC). Popularly recognized as the original crypto, Bitcoin is still the top crypto by market cap with its market cap dominance at 53.5%.

So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.

Bitcoin is the most common cryptocurrency for use, similar to traditional currencies.

The bill seeks a favorable structure for creating the official digital currency issued by the Reserve Bank Of India (RBI). It also prohibits all other private cryptocurrencies but, with certain exceptions, to boost cryptocurrency's underlying technology.

Central Bank Digital Currency (CBDC) is a new form of money that exists only in digital form. Instead of printing money, the central bank issues widely accessible digital coins so that digital transactions and transfers become simple.

Central Bank Digital Currency (CBDC) also known as “Digital Rupee” or “e₹” is defined by RBI as a legal tender issued by a central bank in a digital form. It is the same as a sovereign currency and is exchangeable one-to-one at par (1:1) with existing currency.