The central bank has always been skeptical over cryptos and sees it only as a potential challenge to currency.
Published: 24th August 2022 07:52 AM | Last Updated: 24th August 2022 07:52 AM | A+A A-
RBI governor Shaktikanta Das. (File Photo | EPS)
BENGALURU: Cryptos are a solution to multiple financial problems, say crypto players, as RBI governor Shaktikanta Das told a news channel that since all the cryptos are denominated in hard currencies, by and large, dollar, it will not work in favour of countries like India. He also said that it may be misused as a tool for money laundering.
Crypto players say the comments from the RBI’s governor are not new.
“The central bank has always been skeptical over cryptos and sees it only as a potential challenge to currency. However, this is not completely true. Cryptos are not a threat to a nation’s financial system nor an alternative to any fiat currency of the country,” said Dileep Seinberg, Founder & CEO, MuffinPay, Bill Payment & Utility Crypto.
Many Indian laws are currently silent on digital assets, leaving open room for misinterpretation and misuse. Creating an overarching regulatory framework which protects the regulator’s interests while promoting the decade’s most promising innovation is the way to go, said Anoush Bhasin, Angel investor and an advisor at KoinX.
Last month, Finance Minister Nirmala Sitharaman said that the RBI has asked the government to frame regulations for cryptocurrencies, considering their destabilising effect of them on the monetary and fiscal stability of a country.
“Cryptocurrencies can help small investors make easy transactions in a shorter span with low fees in a secured manner. It can also hedge against inflation. Additionally, it can help in better portfolio diversification from traditional assets such as stocks or bonds,” said Edul Patel, CEO & Co-Founder, Mudrex, a crypto investment platform.
Apart from global factors, the Indian crypto industry also started seeing layoffs, crypto winter and the new TDS rule bringing down volumes on crypto exchanges.
When asked about the crypto industry, Rajgopal Menon, vice president, WazirX, said due to the very nature of the industry, it remains one of the safest options for investment. He said a more nurturing and collaborative environment from policymakers and regulators is needed to let the ecosystem grow while keeping customer interests and safety at the forefront.
Currently, there are about 35 million crypto users in India, Menon added. Mohammed Roshan, CEO & co-founder of GoSats, doesn’t agree with the financial instability argument. “Bitcoin in particular can strengthen the country’s economy. I think the RBI and government need to look at bitcoin as different from crypto.”
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