Should India delay CBDC trials amid the ongoing global crypto crisis? Here’s what the experts think
India, despite its reluctance to make cryptocurrencies part of its financial system, has shown growth in bringing the country’s cryptocurrency to the blockchain. The pilot project for the Indian digital rupee CBDC went live earlier this month, and around the same time, crypto exchange FTX collapsed, wiping out over $200 billion (about 16.32 USD). .940 Rupees) from the global crypto market. Industry insiders have now considered whether Indians need to link CBDCs to the crypto sector and are worried about financial risks amid the crisis of the crypto industry.
CBDC and electronic money, are all built on blockchain, a type of distributed ledger technology. The main difference between them is that CBDCs are issued by central banks and regulated, but cryptocurrencies are not controlled by central banks and are largely unregulated.
In a conversation with Gadgets 360, Alankar Saxena, Technical Director and Co-Founder of Mudrex reminded Indians that our CBDC is just regular rupees on blockchain and is not affected by the volatility of the cryptocurrency market.
“The digital rupee CBDC will stand out regardless of the crypto market downturn. There won’t be any significant impact on the digital rupee. Instead, it can help people switch to a cashless system, improving transparency,” Saxena said.
Earlier this month, the governor of RBI Shaktikanta Das calls the Indian CBDC pilot launch a pivotal moment in the history of currency in the country.
“This is something that we have to proceed with very carefully. Will try and launch a full CBDC in the near future. This is the world’s first time doing it. We don’t want to rush, we want to learn from experience,” Das said speak at that time.
With the CBDC trials, India is making clear progress in further digitizing its economy and the country should not delay the process any further, industry insiders said. The pilot launch is said to have generated considerable interest in India.
The Reserve Bank of India takes the first step towards cryptocurrency implementation in India with the launch of the Digital Rupees Pilot Project.
The payment system is expected to be affordable, accessible, convenient, efficient, safe and secure.#cryptocurrency #cryptonews #cryptoforce #cryptoindia– Akshit Khanna (@khannaakshit29) November 4, 2022
3. How do you use e-rupees?
Token-based retail version. Generally, you find out the recipient’s public key and transfer money to them with your private key. In simpler words, transfer money via UPI, the same process or same as Paytm wallet money of previous years.4/n pic.twitter.com/aRTwOIpX5K
– Siddharth Alok (@sidalok7) November 6, 2022
Speaking to Gadgets 360, Mohammed Roshan, Co-Founder and CEO of crypto-focused fintech company GoStats said that anyone worried about the financial risks surrounding CBDCs can relax. He emphasized that the RBI has repeatedly clarified that CBDCs are completely different from cryptocurrencies and are intended to promote existing financial systems.
“From the road RBI positioned CBDC, it seems quite different from cryptocurrency. I don’t think the RBI will see a link between CBDCs and the crypto market downturn and will continue with its plans,” noted Roshan.
In a recent report, KuCoin Cryptocurrency Exchange claims that India currently has over 115 million crypto investors, representing 15% of the country’s huge population.
However, the tension over investing in the crypto market has peaked in Indian cities. Recent CoinKickoff listed Bengaluru, Chennai and Ahmedabad are among the 20 most ‘crypto-stressed’ cities in the world.
The market downturn has raised major concerns about entering the crypto space or related projects. The layoffs that plagued the sector in the aftermath of the crypto crash have also caused tension among those working in the industry.
Draft regulations are ongoing work on Cryptocurrency law worldwide is also emerging as the main reason why investing in these digital assets is being seen as stressful in some parts of the world, including India.
Cryptocurrency is an unregulated digital currency that is not legal tender and subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any recommendations, forecasts or any other information contained in the article.
