- India’s Central Bank Governor stated crypto is not useful for the country.
- “Countries like India are differently placed from advanced economies when there is a talk of dollarization of economy,” said, Governor Das.
- Indian crypto players persuade regulations to support local crypto ecosystems.
One day after a KuCoin report reveals approximately 115 million Indians are investing in cryptocurrency, India’s Reserve Bank of India Governor, Shaktikanta Das expressed in an interview that crypto is for advanced countries where there is dollarization and won’t work for emerging economies like India.
He further added, “Since all cryptos are denominated in the hard currencies by and large [the] dollar, [they] will not work in favor of countries like India.” His remarks come as a shock to the crypto community in India since the report shows that the majority of crypto investors in India wish to expand their assets in the future.
Since crypto is a form of exchange, RBI officials had already cautioned a parliamentary panel against cryptocurrency, particularly stablecoins, back in May, to protect the monetary sovereignty and avoid dollarization of the Indian economy.
However, crypto enthusiasts feel otherwise. Founder & CEO of the blockchain development company, Antier Solutions expressed that cryptocurrency and blockchain technology possess immense potential to strengthen global economies, given they are implemented in a regulated system.
The RBI has also commented that they will assess the risks present in the sector and review how they are being managed. Even though the Central Bank in India has shared negative views on virtual assets in concerns of money laundering and uncertain financial stability, crypto players in India demand regulations that would diminish the risks and empower India to carry on adopting crypto and have choices beyond international CBDCs.