Exchanges Say Crypto Can Help Unlock India’s Economic Potential

The Indian crypto community, in reaction to central bank governor Shaktikanta Das’ statement that private cryptocurrencies are a big threat to India’s financial and macroeconomic stability, has said crypto assets could help unlock the country’s innovation, job-creation and economic potential.

Also, the exchanges said they praised the stance of the central bank and the government that customer protection is a priority.

“They good thing is that the government and regulators have been very consultative in their approach to the industry, and there is broad understanding that customer protection is of utmost importance. It is encouraging to see India thinking progressively about crypto at par with global counterparts like the US, Dubai, and Singapore,” said Ashish Singhal, founder and CEO, CoinSwitch.

On Thursday, RBI governor Shaktikanta Das said in press interaction after the monetary policy review that private cryptocurrencies were a threat to the macroeconomic and stability of the country, and that investors should keep risks in mind as such assets have no underlying value whatsoever – “not even a tulip.”

At the same press conference, T Rabi Sankar, the RBI Deputy Governor, also said that the Indian CBDC will be exactly like a normal, physical rupee but digital in nature, and it will be one-to-one convertible.

“By creating a central bank digital currency, the government has made it clear that it wants to ring-fence the currency. What it does is that it clearly demarcates currency and crypto. We are also fully supportive of this move,” said Singhal.

Shivam Thakral, CEO, BuyUcoin said: “We understand that as India’s top regulatory body, RBI is concerned about the financial stability of the country.

We would reiterate the fact that crypto, if nurtured in a healthy regulatory environment, is capable of transforming a country’s financial system for good.”

According to Kashif Raza, founder of Bitinning, a crypto education platform, the RBI’s concern is understandable because all central banks around the world have similar concerns.

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