The market of Cryptocurrency is going through a tough time at present. With the FTX crash, there is a general distrust among investors and led to the downfall of many other firms.
The Economic Survey of 2022-2023 of India puts forth their statement about this market. It says that these digital currencies do not have any intrinsic cash flow. Also, the recent FTX crash has been a major reflection of how vulnerable this market can be!
Observing all these, the survey states that this class of digital assets cannot be a financial asset!
What More Does The Survey Say?
The survey is posing the Crypto space to be unfavorable of calling it a financial asset. It does not pass the test of time to be a category of the financial asset.
The FTX collapse and the resultant selling of all the digital currencies show how weak the entire system is! The survey adds this while mentioning the Crypto industry. If you want to know more about bitcoin, then you can visit here bitcoinsuperstar.app.
The FTX crash has been the major point that brought out the weakness and vulnerability of this market. And we cannot ignore it, no matter how enthusiastic we are about the market!
The survey also adds that Cryptos are self-referential. These assets cannot cross the line with financial assets. This is because the assets do not have any intrinsic value.
This survey also points out another important fact about the Crypto industry. In America, the authorities have disqualified Cryptos like Bitcoin, Ether, and many others
What Do The Authorities Say About This?
The Governor of RBI, Shaktikanta Das, shared in an interview last year that Cryptos should be banned or prohibited. He also added that other nations are taking their stand to take action against the market. And in the case of India, prohibiting the market is the probable option.
Das also adds that, if the nation encourages its growth and lets it capture the market, the next crash is not far! And the next huge Crypto crash will come from the private Cryptos in the upcoming days! And this crash will lead to financial crises in the Indian market.
Nirmala Sitharaman, the Union Finance Minister, presented this Economic Survey on the very first day of India’s Budget session!
Are Cryptocurrency Payments Legal In India?
Though Cryptos and this entire industry are not under any regulations in India, there is opposition to it. There are no strict or structured rules that Cryptos need to follow in this nation. And if you are investing in this market, you are doing it at your own risk. The nation will not look after any losses caused by Crypto.
Despite this, many authorities are against the market. The Finance Minister is raising questions on the legitimacy of digital currencies. An introduction of a tax on Crypto earnings has been discussed, but there is still time for official clarification!
Since there are no legal frameworks for this market in India yet, it is hard to say if Cryptos like BTC is legal! If you observe the statements of different officials and authorities, like that of the RBI’s Governor, you can assume that this market is illegal.
But, it is not the complete truth since the government has not put any kind of ban on the operations of this industry to date!
Why Can Cryptos Not Be A Financial Asset?
The recent Economic Survey of the nation has brought many new facts that are quite shocking for a Crypto enthusiast.
The Crypto market is full of volatility and you never know what’s going to happen next. Though you can predict the rates and future trends, uncertainties will always exist. It is an inevitable part of this market.
Besides that, the industry does not have any regulations. This makes it quite easy to carry out fraudulent and Illicit activities. Such activities make the situation more uncertain and difficult to trust. And all the major crashes of the market that took place last year prove this fact!
Conclusion
India’s recent Economic Survey shows that as Crypto does not have any inherent value, it cannot be an asset. It will be interesting to see what are the new rules for the industry that you can find in the upcoming times in the nation!
