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Indian Central Bank contemns the continual adoption of private digital currencies due to its volatile tendency on a global scale
Considering the recent appalling events that hit FTX, the Reserve Bank of India, through its head, Shaktikanta Das is pushing for an end to the use of cryptocurrencies. His argument stems from the fact that if allowed to continue in operation, could precipitate the “next financial crisis” globally.
Speaking at a Banking, Financial Services, and Insurance business conference, the RBI helmsman reasoned that he was “yet to hear any credible argument about what public good or what public purpose” the virtual currency serves. While he believes that private digital currencies should be done away with, he thinks that a government-backed virtual currency should be considered adding that “more and more central banks will embrace” the idea in the coming days.
Championing a Case for CBDCs
Regardless of how well accepted it may have been, the Indian government has never concealed its distaste for the usage of virtual currencies, which it regards as investment fraud. Due to the regulatory authorities’ hostile attitude toward private digital currencies, which resulted in the imposition of a 30% tax on profits from crypto trading, many cryptocurrency dealers do not have a physical presence in the nation.
Such a stance is timely considering that India is leading the G-20 and that hundreds of cryptocurrencies have fallen short of expectations at an alarming rate in recent months. As a result, there is a chance that other nations would forbid its use or adopt stronger regulations to control the industry. The other aspect of this is that every country should create its own public (or government-owned) CBDC as a countermeasure against the private ones.
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