Cryptocurrencies such as Bitcoin and Ethereum, also known as non-fungible tokens (NFTs), will never become legal tender, said the Finance Secretary TV Somanathan.

"Never will Bitcoin, Ethereum, or NFT become legal tender. Crypto assets are assets whose value is determined by a two-person auction. You can buy gold, diamonds, and cryptocurrency, but the value will not be authorised by the government "Somanathan said.

People who invest in cryptocurrencies, according to the secretary, should be aware that they are not acting on behalf of the government. "There is no guarantee that your investment will succeed or fail; you may lose money, and the government is not liable," Somanathan added.

During her Budget speech on Tuesday, Finance Minister Nirmala Sitharaman revealed that the Reserve Bank of India would shortly launch its digital currency. She also stated that any income derived from the transfer of virtual digital assets will be taxed at a rate of 30 percent.

 According to Somanathan, the digital money will be supported by the Reserve Bank of India and will never default. "The Reserve Bank of India (RBI) will back digital currency, which will never default. The money will be issued by the RBI, but the nature of the money will be digital. The RBI's digital rupee will be legal tender. The rest aren't legal tender, won't be legal tender, and will never be legal tender "He said.

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