According to coindesk figures, the prices of prominent cryptocurrencies such as Bitcoin, Ethereum, and others have plummeted dramatically. Prices fell when Facebook said that its virtual or augmented segment will lose USD 10 billion in 2021.
While Bitcoin fell 4.07 percent to USD 36,969.10, Ethereum fell 3.62 percent to USD 2,666.27.
XRP was down 3.62 percent, Solana was down 10.38 percent, Terra was down 7.04 percent, Cardano was down 5.03 percent, Polkadot was down 8.79 percent, Stellar was down 5.03 percent, Dogecoin was down 3.22 percent, Chainlink was down 9.12 percent, Polygon was down 6.66 percent, Shiba Inu was down 4.63 percent, Uniswap was down 6.65 percent, and Wrapped Bitcoin was down 4.02 percent.
Meme currencies, like most other altcoins, have had a rough start to the month, with drops on Wednesday for both SHIB and DOGE — the two most sought-after meme coins, among others. Dogecoin is presently at $0.14 (about Rs. 11), down 3.13 percent in the last 24 hours, while Shiba Inu is worth $0.000022 (approximately Rs. 0.002), down 4.61 percent in the last 24 hours.
India’s Central bank digital currency
While the global crypto market is anticipated to remain volatile, India’s Finance Secretary TV Somanathan told ANI that cryptocurrencies such as Bitcoin or Ether would never become legal cash, adding that only the digital Rupee issued by the Reserve Bank of India (RBI) will be legal tender.
“Digital rupee will be backed by RBI which will never default. Money will be of RBI but the nature will be digital. The digital rupee issued by RBI will be the legal tender. We can purchase non-digital assets with the digital rupee like we purchase an ice cream or other things using our wallet or payments through UPI platform,” the Finance Secretary was quoted by ANI as saying.
India’s Crypto tax
According to a PTI report, Revenue Secretary Tarun Bajaj stated on Wednesday that beginning next year, income tax return forms will have a distinct column for disclosing cryptocurrency earnings and paying taxes.
From April 1, the government will levy a 30% tax, plus cess and surcharges, on any revenue derived from the transfer of any virtual digital asset. The recipient will be taxed on the gift of a virtual digital asset.
Losses incurred as a result of the transfer of a virtual digital asset cannot be offset against other revenue. To gather transaction information, a 1% Tax Deducted at Source (TDS) will be applied to payments made in relation to the transfer of a virtual digital asset.