T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), states that central bank digital currencies can “kill every possible small case” of cryptocurrencies such as Bitcoin and ether.
RBI Vice President Discusses CBDC’s Impact on Cryptocurrencies
RBI Vice President T. Rabi Sankar spoke at a webinar hosted by the International Monetary Fund (IMF) about the potential impact of the Central Bank Digital Currency (CBDC) on cryptocurrencies such as Bitcoin and Ether.
He is said to say:
We (RBI) believe that the CBDC can actually kill the small cases that can occur in the case of private cryptocurrencies.
“Private cryptocurrency” means all cryptocurrencies not issued by the Government of India and the Central Bank, including Bitcoin and Ether.
Sankar explained the central bank’s stance that cryptocurrencies should not be allowed “just because they are backed by high tech.” He added:
Tools that can be used for good can also be used for unwanted purposes. After all, technology is a tool.
Meanwhile, the Government of India is still working on the country’s crypto policy.This week, the Secretary of Economy is the government Finalize Consulting paper on cryptocurrencies.
The RBI has long warned that cryptocurrencies are a threat to India’s financial system and should not be recognized as fiat currencies as some countries, including El Salvador, did.Banks also have cryptocurrencies Dollarization Of the Indian economy.
Sankar said: “Currencies need issuers or have intrinsic value. Many cryptocurrencies that don’t have either are not only deceived investors, but also by expert policy makers and scholars. It is accepted at face value. ”The formula elaborated:
Most cryptocurrencies have an equilibrium value of exactly zero, but can still be priced at fantastic levels.
“But even if cryptocurrencies are valuable, such as some stablecoins that are fixed to a particular currency, their unquestionable acceptance seems puzzling to me,” he said. I did.
The Central Bank of India is currently developing its own CBDC. Banks said this weekStep-by-step approachFor the release of digital rupees.
Do you think central bank digital currencies can kill cryptocurrencies like Bitcoin? Let us know in the comments section below.
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