India remains the topper for the second consecutive year in 2024 in terms of crypto adoption. Still, it is worth noting that the nation is among countries with a tough and unfavorable set of rules for digital currencies.
During G30, the 39th Annual International Banking Seminar organized in Washington DC, the governor of the Reserve Bank of India, Shaktikanta Das, argued his uncomfortness with the idea of “private money,” which, as per him, is eroding the payment system and the sovereignty of regional governments.
The statement was made while Mr. Das was speaking over the issue concerning cryptocurrencies and stablecoins. Yet he did not oppose blockchain technology; instead, he praised the concept of Central Bank Digital Currency (CBDC), terming it the future of national/ fiat currencies.
India has been exploring the potential of CBDCs, and as per the governor, the pilot program for Indian digital currency has received an appreciable response. Earlier this week, an unknown official of the Indian government noted that the government has been discussing cryptocurrencies for a long time, and there are expectations that it might impose an entire ban on cryptocurrencies with the intent of promoting the concept of the Central Bank Digital Currency.
India imposes 31 percent (including 1 percent cess) of total tax on cryptocurrency gains; despite huge taxes, the user penetration rate has been surging year on year.
The move to launch its CBDC by the India Central Bank is largely appreciated, yet data states E – Rupees remain less preferred among Indian residents compared to crypto.
India’s CBDC to Surpass the Crypto Popularity in the Nation!
India has made a massive contribution to the global cryptocurrency market, surpassing the United States in terms of crypto adoption.
Several other nations have dubbed their CBDC; some have performed well, but CDBCs like E-Naira have failed at the verge.
As per Indian finance experts, the government of India and financial regulators should reconsider the discussion over cryptocurrencies, as a combination of CBDC and crypto should open new paths for the betterment of the nation’s traditional finance market.
CBDC could be considered a good alternative to crypto, but the centralization factor will keep you tracked by the government for every spending. On the other hand, cryptocurrencies have been closely tied to the surge in illicit activities, but they also offer the feature of being anonymous and untracked.
The initiative to launch CBDCs might prove to be a boon for the Indian market and residents, as the UPI hit and trial by the Indian government has been its biggest all-time victory in the finance sector.
India is among the top 10 leading and fastest evolving economies in the world, and innovation and concepts of the Indian market are largely appreciated by elite nations.
In the past few years, the regulatory crackdowns on crypto-based activities have surged significantly, and several reports note that Indian regulators have gathered huge penalties from such companies.
However, it is unclear whether the Indian government or regulators hold any cryptocurrency that was seized in dozens of operations throughout the nation. Worth noting the United States government holds a significant amount of Bitcoin and other cryptocurrencies seized in operations like Silicon Valley.
