Bank

Time

India’s regulatory position on cryptocurrencies and central bank digital currencies continues to fuel debate, with recent discussions suggesting CBDCs could have an edge over “private cryptocurrencies.”
In an Oct. 23 X post, Sumit Gupta, the co-founder and CEO of CoinDCX, argued that CBDCs and cryptocurrencies like Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>) serve different purposes and “shouldn’t be viewed as competitors.”
His post prompted responses from the crypto community, with some warning that CBDCs could resemble “digital fiat,” potentially carrying the same inflationary risks as traditional currencies.
As India shapes its approach to crypto regulation, striking a balance between security and innovation will likely influence its role in the global digital economy.
<figure><img alt="CBDCs and crypto should coexist, not compete — CoinDCX co-founder" src="https://s3.cointelegraph.com/uploads/2024-10/0192cda4-2352-7da7-9e67-e1883779cce7" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/smtgpt/status/1849015116072976885" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://x.com/smtgpt/status/1849015116072976885">Sumit Gupta</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/india-government-crypto-tax-blockchain-web3" rel="noopener noreferrer nofollow" target="null" text="null" title="null">India’s crypto tax is a gov’t attempt to ‘displace’ the tech — Lawyer&nbsp;</a>
<h2 id="cbdcs-vs-cryptocurrencies">CBDCs vs. cryptocurrencies</h2>
In an interview with Cointelegraph, Gupta said he believes both CBDCs and cryptocurrencies are valuable but serve different roles:
<blockquote>
 “CBDCs are issued centrally by the nation’s central bank, which ensures complete control over their issuance, supply and usage.”
</blockquote>
Gupta added that “this centralization enables effective implementation of monetary policy, allowing for better management of inflation, liquidity and interest rates.”
However, some remain skeptical. In a recent Cointelegraph interview, Jack Booth, co-founder of TON Society, said, “CBDCs pose the greatest danger to self-sovereignty,” adding that public trust in governments is at historic lows:
<blockquote>
 “Public trust in governments, especially in Western countries, is at its lowest level ever. The introduction of CBDCs, which would give unelected officials complete authority over your funds, would only worsen the existing problems that prompted and fueled the development of Bitcoin many years ago.”
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/central-bank-ai-financial-stability-concerns" rel="noopener noreferrer nofollow" target="null" text="null" title="null">AI risks financial stability, warns Indian central bank governor</a>
<h2 id="risk-of-banning-cryptocurrencies">Risk of banning cryptocurrencies</h2>
India has debated banning private cryptocurrencies, but Gupta said he believes the country is open to fintech innovation:
<blockquote>
 “Various Web3 reports have indicated that with over 75,000 core Web3 talents and more than 450 Web3 startups in India, implementing a ban could stifle the entrepreneurial spirit and hinder advancements in blockchain technology.”
</blockquote>
Gupta highlighted that India’s regulation has enabled crypto exchanges to comply with Financial Intelligence Unit (FIU) guidelines and tax frameworks.
This shift could be seen in March when the Supreme Court of India <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/india-supreme-court-lifts-rbi-ban-on-banks-servicing-crypto-firms" rel="noopener noreferrer nofollow" target="null" text="null" title="null">struck down the Reserve Bank of India’s (RBI) ban</a> on banks’ dealings with crypto-related firms.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/supreme-court-india-youtube-hacked-ripple-xrp-scam" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Supreme Court of India YouTube channel hijacked to shill XRP</a>
<h2 id="striking-the-regulatory-balance">Striking the regulatory balance</h2>
Gupta urged the Indian government to “ensure a level playing field where all participants follow the law of the land:”
<blockquote>
 “Unfortunately, there are still players which are not compliant on various parameters [...] taxation still remains high on our agenda. Time and again, various reports have established that taxation drove a lot of users to offshore platforms.
</blockquote>
Gupta said he hopes that “relief is given on taxation” since the establishment of compliance and monitoring, which he says is being “driven through PMLA [Prevention of Money Laundering Act] initiatives.”
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/solana-champion-mert-mumtaz-fud-sol-most-helius/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">The rise of Mert Mumtaz: ‘I probably FUD Solana the most out of anybody’</a>

CBDCs and crypto should coexist, not compete — CoinDCX co-founder

Table of Contents

Cointelegraph

Other articles published on Oct 27, 2024

2 Trillion Shiba Inu (SHIB) in 24 Hours: Something to Happen on Monday?

Catch These 4 Cryptos Before the Boom: The Ultimate Watchlist for Massive Gains

Rollblock Could Be Set To Replicate SAND and MANA Famous 100x Runs As 7000+ Game Platform Picks U...

Experts Predict 1000x For this New Crypto, How Does Lunex Compare to Solana and Avalanche?

Dogen presale explodes with a 28,000% increase, aiming to surpass SHIB and PEPE

These 3 Altcoins Will Explode in the 2025 Crypto Bull: LINK, SUI, NEAR

Join our free newsletter for daily crypto updates!