Indian crypto firms oppose RBI’s CBDC concept memorandum which aims to replace private digital assets

Days after the Reserve Bank of India (RBI) issued its concept note on a central bank digital currency (CBDC), the institution faced a backlash from crypto companies.

In this line, the heads of crypto companies operating in the country called the RBI’s goal to replace digital assets with CBDCs as “the comparison of apples and oranges”, Economic times reported on October 9.

“Is CBDC another Bitcoin (BTC)? Central Banks are comparing apples to oranges. Cryptocurrencies are tokens. CBDCs are digital currencies. We are comparing stocks. With INR? I didn’t realize that the only objective of CBDC is a virtual digital asset replacement.”

RBI accused of conservative encryption strategy

Elsewhere, another executive noted that the concept note refers to RBI’s limited, conservative, and outdated perspective on cryptocurrencies. The CEO of crypto investment platform Koinbasket, Khalilullah Baig, suggested that this approach points to the need for the central bank to maintain a monopoly on fiat currency.

“I see money going to continue to move and coexist in the form of fiat and cryptocurrencies as how messages move and coexist today in the form of SMS and WhatsApp,” Page said.

At the same time, executives stated that the traditional financial sector could incorporate elements from the crypto space, such as the deployment of distributed ledger technology, to improve transaction accuracy.

They agreed to launch central bank digital currencies in line with the growth of India’s digital ecosystem while challenging the institution to adapt to private assets.

Opposition to crypto in India

India’s opposition to private digital assets has centered around promoting financial stability. Therefore, CBDC was introduced as the country’s sovereign digital currency.

“It is the responsibility of the central bank to provide its citizens with risk-free digital money for the central bank,” the RBI said.

Notably, India has long expressed its intention to crack down on cryptocurrencies, as the Reserve Bank of India lobbied for a ban on digital assets. However, given the cross-border nature of digital assets, the regulator called for international cooperation to achieve standard regulations.

In general, the crypto-regulatory space in India has been confused at a time when the country is experiencing a growth in crypto users and entities providing related services.

Crypto firms in India opposed after a RBI CBDC concept note aimed at replacing private digital assets first appeared on Coinphony.

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