Following the publishing of its concept paper on a central bank digital currency (CBDC), the Reserve Bank of India (RBI) has received criticism from crypto firms.
Economic Times reported on October 9 that CEOs of crypto businesses operating in the nation described RBI’s plan to replace digital assets with a CBDC as “comparing apples and oranges.”
“Is CBDC a Bitcoin (BTC) alternative? The central bank is making apples-and-oranges comparisons. A cryptocurrency is a token. CBDC is an electronic currency. Comparing several equities. using INR? I had no idea that CBDC’s only objective was to replace virtual digital assets, stated an anonymous executive.
Another executive stated that the concept paper demonstrates the RBI’s restricted, conservative, and out-of-date stance on cryptocurrency. Khaleelulla Baig, the chief executive officer of the cryptocurrency investing platform Koinbasket, said that the strategy indicates the central bank’s aim to protect its fiat currency monopoly.
In addition, the CEOs claimed that the conventional financial industry may include crypto-space aspects, such as distributed ledger technology, to improve the accuracy of transactions.
They agreed that building a CBDC is consistent with the expansion of India’s digital ecosystem and challenged the organisation to be accommodating to private assets.
India’s objection to private digital assets has been motivated by the need to preserve financial stability. Therefore, the CBDC has been presented as the nation’s sovereign digital currency.
The Reserve Bank of India has long advocated for a ban on virtual currencies. Due to the worldwide character of digital assets, the regulator has been advocating for international collaboration in order to establish standardized laws.
In general, India’s crypto regulatory area has been clouded by ambiguity at a time when the nation is seeing an increase in crypto consumers and organizations providing related services.