The Reserve Bank of India (RBI) has come under fire from cryptocurrency companies in the days following the publishing of its concept note on a central bank digital currency (CBDC).
According to a story in the Economic Times on October 9, executives of crypto companies operating in the nation have referred to RBI’s plan to replace digital assets with a CBDC as “comparing apples and oranges.”
“Is CBDC another Bitcoin (BTC)? The central bank is comparing apples to oranges. Cryptocurrencies are tokens. CBDC is a digital currency. We are comparing stocks. with INR? I didn’t realize that CBDC’s only goal was to replace virtual digital assets,” said an executive who sought anonymity.
RBI accused of conservative crypto approach
Elsewhere, another executive noted that the concept note points to RBI’s limited, conservative, and outdated perspective on cryptocurrencies. The CEO of crypto investment platform Koinbasket, Khaleelulla Baig, suggested that the approach points to the central bank’s need to maintain a fiat currency monopoly.
“I see that money will continue to move and coexist in the form of fiat and cryptocurrencies as the way messages move and coexist today in the form of SMS and WhatsApp,” said Baig.
At the same time, the executives stated that the traditional finance sector could incorporate elements of the crypto space, like deploying distributed ledger technology, to enhance the accuracy of transactions.
India’s crypto opposition
India’s opposition to private digital assets has been centered around promoting financial stability. Therefore, the CBDC has been fronted to be the sovereign digital currency in the country.
“It is the responsibility of the central bank to provide its citizens with risk-free central bank digital money,” RBI said.
It should be noted that India has long declared its intention to combat cryptocurrencies, with the RBI promoting a ban on digital assets. However, the regulator has been urging global collaboration to develop uniform laws because of the transnational character of digital assets.
Overall, India’s regulatory environment for cryptocurrencies has been plagued by uncertainty at a time when the country is seeing an increase in cryptocurrency users and businesses providing related services.
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