Goldman Sachs Exec: Crypto Created by Central Bank Can Be Useful

A senior executive for Goldman Sachs believes that cryptocurrencies created by central banks could be incredibly useful  
28 February 2018   156

During an interview with Business Insider, Sharmin Mossavar-Rahmani, chief investment officer for Goldman's Private Wealth Management unit noted that in her opinion, cryptocurrencies in their current format are in a bubble.

The bitcoin prices are astronomical. Then we compare that to the ether, and ether is even more astronomical. So clearly, these valuations don't make sense to us.

Sharmin Mossavar-Rahmani

Furthermore, Mossavar-Rahmani stated that in future such digital currencies would be more useful than the coins in existence today. She said that there is a room for a digital currency, for example, sponsored by one of the central banks. In her opinion, it could be very useful and it could reduce transaction costs. But, the existent currencies can't do that.

She went on to speculate about the impact of a potential downturn in the cryptocurrency market on the wider economy.

So in terms of the impact, it'll have some impact. There are a lot of people who have set up various exchanges, infrastructure, hedge funds in that space, so obviously, they will get hurt. But it's a very, very small part of global GDP.

Crypto Taxpayers to be supported in India

Cleartax, the largest Indian tax filing platform joins Zebpay exchange to help crypto taxpayers
24 March 2018   102

The object of this partnership is to educate Bitcoin traders and investors about the current tax laws and how to apply them in stating cryptocurrency profits and incomes. Indian authorities are aimed to find the best approach to Bitcoin and the other kinds of cryptocurrencies. The recent declarations of the regulators that new instructions would be accepted in a short time, have not been followed by real actions. So the attempts to enforce the control on this sphere have led to summaries that this task in not going to be simple at all. According to last month media reports, new frameworks and rules were waited by the end of March.

Though they failed to to introduce extensive regulations, the Indian authorities are focused to tapping into crypto earnings. In a previous month the Income Tax Department released notifications for thousands of cryptocurrency investors, as reported.

The Cryptocurrency Advisory Plan will help Indian bitcoin investors and traders in this year's tax campaign. The biggest tax filing platform Cleartax joins the Indian bitcoin exchanges and wallet providers Zebpay. They are both objected to support taxpayers to understand and abide by the law regarding taxation of the transactions with cryptocurrencies.

Cleartax declared it has the tax and technological expertise “to help people understand how bitcoin works”. Besides, the platform has started tax filing services for cryptocurrency investors. The Cleartax CEO and founder Archit Gupta claimed that together with Zebpay they are going to “simplify taxes for Indians”. The head of exchange at Zebpay, Nischint Sanghavi added that he believes the partnership with Cleartax will simplify tax planning for Zebpay`s customers.

In February about 100,000 cryptocurrency investors received tax notices from India`s Income Tax Department. Questionable dubious transactions, authorities investigated some of the cryptocurrency exchanges, and banks paused many of their accounts. Then the governmental pressure caused significant drop in trading volumes.

The authorities in Delhi have set a number of warnings against investing in BTC. Also the largest commercial banks have restricted severely the operations of local exchanges and individual cryptocurrency traders, even before any law demanding such measures is adopted.