#cbwnews

[businesscbw]

RBI warns against 'dollarization' of the economy caused by cryptocurrencies

Reserve Bank of India (RBI) officials have warned that the majority of cryptocurrencies are denominated in dollars, which could lead to the dollarization of the Indian economy...

As top officials of the RBI, including Governor Shaktikanta Das, briefed the Parliamentary Standing Committee on Finance, chaired by former minister of state for finance Jayant Sinha. Among their concerns were the challenges cryptocurrencies pose to the stability of the financial system.

RBI officials told the panel, "It will seriously undermine the RBI's capacity to determine monetary policy and regulate the monetary system of the country."

Cryptocurrency may replace the rupee in domestic and international finance transactions, according to central bank officials, saying these currencies "will affect the banking system by undermining the RBI's ability to regulate the flow of money".

In close consultations with officials, it was revealed that the officials admit there are potential uses for various digital currencies as a medium of exchange and alternative to the rupee. However, they warn that with the potential to replace a part of the monetary system, it would prove difficult to regulate money circulation.

[businesscbw]

Portugal to reverse crypto tax

Portugal to reverse crypto tax On May 13, Portugal’s Minister of Finance Fernando Medina said in the country's parliament that cryptocurrencies will be dependent upon taxation sooner rather than later

Medina commented in parliament that his reasoning for the tax came to fruition by contrasting Portugal with nations that as of now have systems set up. Furthermore, Sapo detailed that Medina noticed that it doesn't seem right for an asset that makes capital increases to not be burdened. He said: "There cannot be gaps that cause there to be capital gains in relation to the transaction of assets that do not have a tax."

Medina won't force a smothering pace of tax assessment on crypto gains. He made sense that it is critical to make and execute a framework that makes tax assessment "adequate," yet which doesn't "end up reducing revenue to zero, which is contrary, in fact, to the objective for which it exists."

At the Parliamentary working meeting, Mendes said that tax assessment from cryptocurrency is more confounded than most different assets since "there is no universal definition of cryptocurrencies and crypto assets."