By Bunty Thoridingjam |
Updated: December 31, 2022 9 :20 PM ist
New Delhi [India]Dec 31 (ANI): Despite India The Reserve Bank of India (RBI) is still considering the possibility of launching its own digital currency with components based on blockchain technology. But, as of now, no steps have been taken to regulate the issue.
The issue was raised after the collapse of FTX’s trading platform, however, some people are of the opinion that these disruptions to the crypto market do not compromise the intrinsic value of cryptos and these products give users more control over their assets.
Blockchain Technology allows the existence of cryptocurrency. RBI This is India has been vocal about its views on cryptocurrencies and its governor Shaktikanta Das said that it should be “banned” and that it should be allowed to grow. “next financial crisis” Private cryptocurrencies will be used.
He The company claimed they do not have any underlying and it is only speculation.
“I still hold the view that it should be banned. Countries have had different views, but our opinion is that it should be banned. If you try to regulate it and allow it to grow, mark my words, the next financial crisis will come from private cryptocurrencies.” Das said.
He Three key concerns were raised about cryptocurrencies.
“I would like to mention three points. One, the origin of cryptocurrencies, private cryptocurrencies is to circumvent the system, break the system. They don’t believe in central bank currency, they don’t believe in the regulated financial world. They want to circumvent and beat the system “SecondThey have no foundation. Not Only one thing: I have yet not heard any convincing argument as to the purpose or public good it serves. There There is no clear answer. ThirdIt is 100 percent speculation.” Das said during a BFSI information summit organized by a business publication.
Das also said that cryptocurrencies have certain inherent risks to macroeconomic and financial stability.
“We have been pointing it out and its developments for the last year, including the last episode that was built around FTX. We need not say anything more about our support. Time has shown that cryptocurrencies are worth what they are today,” he added.
Das cited some estimates that the total value of cryptocurrencies was around $180 billion and has now dropped to around $140 billion, essentially meaning around $40 billion in value was wiped out.
Crypto assets are currently not regulated in India.
The government does not register crypto exchanges and has suggested that crypto assets, by definition, have no borders and require “International collaboration”
The government believes that any legislation to regulate or ban can be effective only with significant international collaboration in assessing the risks and benefits and the evolution of taxonomy and common standards.
Cryptocurrency involves risk and volatility, but the market has attracted traders and investors looking for quick profits.
FTX was a high-profile crypto exchange and it crashed in November due to misappropriation of client funds. Earlier in the year, cryptocurrency hedge fund Three Arrows Capital (3AC) went into liquidation and developments hurt the cryptocurrency industry.
FTX’s collapse left a million creditors around the world with funds locked up on the exchange or lost in the revolving doors of fund transfers between FTX and its trading arm Alameda Research.
Crypto industry experts feel that the growing adoption of digital payments and the growing adoption of blockchain technology are converging with the underlying concept of cryptocurrency.
Neel Kukreti, trader and founder of Crypto Jargon, said that cryptocurrency has come a long way, but still has a long way to go in terms of widespread adoption and usage.
Finance Minister Nirmala Sitharaman in the 2022 Union Budget announced that “Any income earned from the transfer or use of virtual digital assets will be subject to a 30% tax” The government had intended to introduce a cryptocurrency bill, but it was postponed because it wanted broader consultations.
The Reserve Bank of India has also started to embrace blockchain technology, as evidenced by its recent Central Bank Digital Currency (CBDC) pilot program.
Kukreti said that the digital rupee is a good concept on its own, but it does nothing to promote the adoption of traditional cryptocurrency assets.
He said that most digital currencies were still in their infancy and subject to heavy speculation.
“Even Bitcoin, the oldest and most well-known cryptocurrency, was very volatile. Only commodity-recognized cryptocurrencies are likely to survive,” he said.
Nadeem Khan, a trader who has been investing in cryptocurrency for eight or nine years, said the launch of his own digital rupee in India
