Following is an copy of the email sent to the RBI Governor today
To
The Governor
RBI
Mumbai
Dear Sir
In the latest budget, it has been proposed that
a. RBI will introduce an official digital currency
b. The private crypto currencies as we know today will be called “Digital Assets” and they will be taxed at 30% of profits at the end of the financial year and 1% TDS on transactions.
We consider that bringing Private Crypto Currencies under the tax bracket provides a kind of recognition for these currencies and though the Government calls it as “Assets” will continue to be used as “Currencies’ ‘.
This will directly affect the legit currencies.
The crypto currency accounts can be opened with foreign Bit Coin and other exchanges using anonymous email accounts opened with service providers such as Proton Mail. There is no way that KYC norms can be effectively imposed on such international crypto transactions.
There is also the danger of the Ripple.com being used by exporters and importers to bypass SWIFT.
As a result of these moves, you are aware that the RBI and the Banking system will become redundant and there will be a huge adverse impact on the monetary system in India.
I consider that though you are aware of the adverse impact of the moves on the Crypto currencies made by the Finance Ministry, you are keeping quiet. This is unfortunate.
Please let me know if RBI has abandoned its Central Bank duties.
We also consider that the Official Digital Currency is a camouflage to provide cover to the private crypto currencies and we donot expect much benefit to the society through this system. On the other hand this will introduce a new security risk where your digital mint can be hacked and unlimited digital currencies can be issued out to the dark net by hackers.
You are ignoring this risk and causing damage to the monetary system in India which you are expected to protect.
These factors need a public debate and I request you to kindly share your views.
Naavi
Na.Vijayashankar
Netizen Activist
Founder : www.naavi.org
