Vibhor Sharma, Campus Law Centre, Faculty of Law, Delhi University
ABSTRACT
This article discusses the future of cryptocurrency in India from an economic and legal point of view. Cryptocurrencies seem to have been the most proliferated financial asset, especially among youths mostly because of the stupendous rise in their valuation to reach a mammoth valuation of over $2 trillion. However, cryptocurrencies have inherent problems of their own which can pose a grave danger to the financial stability of an economy. Lack of intrinsic value, unbridled circulation, and associated environmental costs make it unfavorable to central banks across the globe. However, the government seems to be reluctant to ban cryptocurrencies completely because it has the potential in helping government discharge its fiscal responsibility. Taxing the income from cryptocurrencies at the highest tax slab rate without any benefit of allowance or setting off losses will help the government in bridging the gap between its revenue and expenditure. Presently, the fate of cryptocurrencies remains uncertain.
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