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India’s central bank fears digital currencies will destroy the country’s macroeconomic and financial stability, so it wants to ban them
The Central Bank of India is in favor of a complete ban on cryptocurrencies in the country. The newspaper The Economic Times writes about this with reference to sources close to the regulator.
It is reported that the regulator presented to the board of directors a detailed presentation highlighting “serious concerns” regarding the implications of cryptocurrency turnover for macroeconomic and financial stability. The regulator also pointed out difficulties with the regulation of intangible assets entering the country from abroad.
However, not all members of the Board of Directors approved the Central Bank’s ultimatum position. Some have pushed for a balanced approach to cryptocurrencies, sources said. This was due to changes in the technological space.
India has long been unable to decide on the regulation of the cryptocurrency market. For example, it was previously reported that the Securities and Exchange Commission of India would not ban cryptocurrencies, but would regulate them. The initiative came from the Indian Cabinet of Ministers.
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It is noteworthy that it was the government of India that previously advocated the prohibition of all “private cryptocurrencies”. As The Guardian wrote, the government planned to ban private cryptocurrencies and only allow digital currency from the Central Bank.
The position of the Indian financial regulator echoes the repressive rhetoric of the Bank of Russia. We will remind, earlier the head of the Central Bank of the Russian Federation Elvira Nabiullina stated that “a responsible state should not stimulate them [криптовалют] Spread”. At the same time, the head of the Central Bank of the Russian Federation believes that the digital ruble can become an alternative to bitcoin.
“But people need to be given an alternative, and we do this with the help of our projects. I have already spoken about the digital ruble – in our opinion, this should develop, ”she said.
At the time of this writing, the capitalization of Bitcoin alone is ahead of the money supply of the ruble. Thus, the capitalization of bitcoin is ~ ₽64.2 trillion, when the mass of the ruble, according to the Central Bank of the Russian Federation, is ~ ₽60.8 trillion.
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