India’s regulatory stance on cryptocurrencies and central bank digital currencies continues to spark debate, with recent discussions suggesting that CBDCs may have an edge over “private cryptocurrencies”.
In an October 23
His post sparked a response from the cryptocurrency community, with some warning that CBDCs could potentially be similar to “digital currencies” carrying the same inflation risks as traditional currencies.
As India refines its approach to cryptocurrency regulation, striking a balance between security and innovation is likely to impact India’s role in the global digital economy.
source: Sumit Gupta
relevant: India’s cryptocurrency tax is not an attempt by the government to ‘replace’ the technology — Lawyer
CBDC and cryptocurrency
In an interview with Cointelegraph, Gupta said he believes both CBDCs and cryptocurrencies have value, but they play different roles.
“CBDCs are centrally issued by national central banks, ensuring complete control over issuance, supply and use.”
“This centralization will allow us to implement monetary policy effectively, allowing us to better manage inflation, liquidity and interest rates,” Gupta added.
But some people are still skeptical. In a recent Cointelegraph interview, TON Society co-founder Jack Booth said, “CBDCs pose the greatest risk to self-sovereignty,” adding that public trust in government is at historic lows. Yes.
“Public trust in government, especially in Western countries, is at an all-time low. The introduction of CBDCs, which give unelected officials complete control over your funds, will only exacerbate the existing problems that sparked and promoted Bitcoin development years ago.”
relevant: AI puts financial stability at risk, India’s central bank governor warns
Cryptocurrency Ban Risks
India has discussed banning private cryptocurrencies, but Gupta said he believes the country is open to fintech innovation.
“According to various Web3 reports, India is home to over 75,000 core Web3 talent and over 450 Web3 startups, and implementing a ban could stifle entrepreneurship and hinder the advancement of blockchain technology.”
Gupta emphasized that India’s regulations allow cryptocurrency exchanges to comply with Financial Intelligence Unit (FIU) guidelines and tax regimes.
This change was seen in March when India’s Supreme Court struck down the Reserve Bank of India’s (RBI) ban on banking transactions with cryptocurrency-related companies.
relevant: Supreme Court of India YouTube channel has been hijacked by Shill XRP.
Maintaining regulatory balance
Gupta urged the Indian government to “ensure a level playing field where all participants are subject to the laws of the land.”
“Unfortunately, there are still players who do not adhere to various parameters. (…) Taxation remains top of our agenda. Various reports continue to emerge showing that taxation has driven many users to overseas platforms.
Gupta said he hoped there would be “relief on taxation” after compliance and monitoring are established, which is “being driven through PMLA (Prevention of Money Laundering Act) initiatives.”
magazine: Mert Mumtaz’s rise: ‘I probably FUD’d Solana the most.’