Outlaw cryptos in India? – While Indian government moves forward in regulation of digital assets, the country’s Central Bank wants rather than theIndia take some drastic measures against cryptocurrencies.
Ban cryptocurrencies to protect macroeconomic and financial stability
During the Business Standard BFSI Insight Summit on December 21, the governor of the Indian central bank, Shaktikanta Dascalled for a outright ban private cryptocurrencies, not to their regulation which would then allow them to develop, for avoid the next crisis financial.
Shaktikanta Das wants to ban private cryptocurrencies that would not have “no underlying value” and which would threaten the “macroeconomic and financial stability” from the country. Furthermore, these cryptocurrencies would not serve any public good or purpose, according to the Governor of the Central Bank of India.
Shaktikanta Das calls private cryptocurrencies a “fashionable way” to describe “otherwise a 100% speculative activity”. Speaking to news outlet CoinDesk, sources familiar with the workings of the Reserve Bank of India instead defined private cryptocurrencies by first referring to their opposite, which would be public cryptocurrencies, such as central bank of india.
Such a definition of public cryptocurrency raises questions, because in fact, the MNBC that are not issued using decentralized technology such as blockchain could hardly be qualified as cryptocurrencies.
In their definition, these sources put the Bitcoin (BTC) and theEther (ETH) in the category of private cryptocurrencies given that their issuers are private players.
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FTX case: the Indian Bank confirms its anti-crypto position
This anti-crypto position of the Central Bank of India on private cryptocurrencies could have an impact on the sector beyond the borders of the country, if the leaders of the other institutions also work in this direction and manage to convince other jurisdictions, then that India currently holds the presidency of the G20.
Different countries presented their views on how to regulate the crypto industry during the G20 meetings over the past few days in India. For the Governor of the Indian Central Bank, the position of his institution is clear. He did not fail to mention “Last year’s developments, including the latest episode around FTX”to justify the way his institution sees cryptocurrencies.
These comments by Shaktikanta Das come at a time when the Indian Central Bank is trying to promote your digital currencywhich would not be issued (only?) to compete with a private cryptocurrency, according to the governor.
A digital rupee would be a response to a changing world, and India wants to be “at the forefront of the digital revolution of the current century”as Shaktikanta Das predicts growing number of central banks will adopt digital currencies ” in the coming days “.
The governor of the Indian central bank so wants to prohibit cryptocurrencies, even if it means doing without the economic opportunities that the sector creates. However, India is today fertile ground for the growth of web3, given the increase in investments which have been carried out in the industry, as well as the strong concentration of talent in the field.
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