India’s crypto firms oppose RBI’s CBDC concept note that aims to replace private digital assets
Days after the Reserve Bank of India (RBI) released its concept note on a central bank digital currency (CBDC), the institution has faced backlash from crypto companies.
Along these lines, executives of crypto firms operating in the country have called the RBI’s aim to replace digital assets with a CBDC as “comparing apples and oranges,” Economic Times reported on October 9.
“Is CBDC another Bitcoin (BTC)? The central bank is comparing apples to oranges. Cryptocurrencies are tokens. CBDC is a digital currency. We compare stocks. to INR? I didn’t realize CBDC’s only goal was to replace virtual digital assets,” said one manager who requested anonymity.
RBI accused of conservative crypto approach
Elsewhere, another executive noted that the concept note points to the RBI’s limited, conservative and outdated perspective on cryptocurrencies. CEO of crypto investment platform Koinbasket, Khaleelulla Baig, suggested that the approach points to the central bank’s need to maintain a fiat currency monopoly.
“I see money will continue to move and coexist in the form of fiat and cryptocurrencies like the way messaging moves and coexists today in the form of SMS and WhatsApp,” Baig said.
At the same time, the executives stated that the traditional financial sector could incorporate elements from the crypto space, such as deploying distributed ledger technology, to improve the accuracy of transactions.
They agreed to launch a CBDC in line with India’s digital ecosystem growth, while challenging the institution to be accommodating to private assets.
India’s crypto opposition
India’s opposition to private digital assets has centered around promoting financial stability. Therefore, CBDC has been fronted to be the sovereign digital currency in the country.
“It is the central bank’s responsibility to provide citizens with risk-free central bank digital money,” RBI said.
In particular, India has long expressed its intention to crack down on cryptocurrencies, with the RBI pushing for a ban on digital assets. However, due to the cross-border nature of digital assets, the regulator has called for international cooperation to achieve standard regulations.
Overall, India’s crypto regulatory landscape has been marred by confusion at a time when the country is witnessing a growth in crypto users and entities offering related services.
