Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar says the central bank’s digital currency “can kill any small case” for cryptocurrencies like bitcoin and ether He stated.
RBI Deputy Governor discusses CBDC’s impact on cryptocurrencies
RBI Deputy Governor T. Ravi Sankar spoke about the possible impact of central bank digital currency (CBDC) on cryptocurrencies such as bitcoin and ether in a webinar hosted by the International Monetary Fund (IMF), local media reported on Friday.
and was quoted as saying.
We (RBI) believe that CBDC can actually kill any small case for private cryptocurrencies.
The Government of India and the Central Bank of India refer to “private cryptocurrencies” as all cryptocurrencies that are not government issued, such as Bitcoin and Ether.
Sankar explained the central bank’s stance that cryptocurrencies should not be allowed “just because they are backed by high technology.” He further
tools that can be used for good can also be used for undesirable purposes. Technology, after all, is a tool.
Meanwhile, the Indian government is still working on the country’s crypto policy. This week, the secretary for economic affairs revealed that the government is finalizing a consultation paper on cryptocurrencies.
The RBI has long warned that cryptocurrencies are a threat to India’s financial system and should not be recognized as legal tender as in some countries such as El Salvador. The bank has also warned that crypto could lead to the dollarization of the Indian economy.
Sankar elaborated.” Currencies require either an issuer or an intrinsic value. Many cryptocurrencies that have neither are still accepted at face value – not only by gullible investors, but also by expert policymakers and academics.” . The official elaborates.
Most cryptocurrencies have an equilibrium value of exactly zero, but are still priced at sometimes fantastic levels.
“But even if cryptocurrencies do have value, for example, some stable coins that are pegged to a particular currency, their unquestionable acceptance seems puzzling to me,” he opined.
India’s central bank is currently developing its own CBDC. The bank said this week that it will take a “phased approach” to the launch of the digital rupee.
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