RBI deputy governor states CBDC will wipeout cryptocurrency

[pakhitheboss]

Recently at a webinar organised by the IMF our deputy governor for the RBI stated

We (RBI) believe that CBDCs would actually be able to kill whatever little case there could be for private cryptocurrencies.

He is basically referring to Bitcoin, Ethereum and other cryptocurrency which they have termed as private cryptocurrency. You can read the complete article here

I am not sure how he came to that conclusion? Wherein RBI uses its foreign reserves whenever the INR value falls to USD.
They do it by buying back INR with the USD they hold in foreign reserves, creating an artificial demand of INR.

INR does not hold any kind of demand in the international market as compared to USD. This same problem has been resolved to a great extent by China with their lending policy and also by introducing their international payment system similar to visa to the world. Internationally still only Chinese use that payment system know as Unionpay.

India has not created a market for its UPI payment system. It has started but it will take time to achieve it. In the meantime in crypto universe there are new invention every month. Therefore I feel the deputy governor or the government is too overconfident at the moment. 

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[teosanru]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

[pakhitheboss]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

They are still living in the stone age in my opinion. They could have made India the most happening place for blockchain and cryptocurrency but they choose not to do so. In these critical times when you are surrounded by failing countries, they could have taken a step further in boosting the economy by accepting cryptocurrency as a part of the new-age tech revolution and implementing proper regulations as well as taxation systems. Such an attitude was accepted by the banks and their governing body.

[elevates]

How can they consider CBDC to be a substitute for cryptocurrency when it is a whole idea of decentralized and centralized or legal tender (regulated) by the government? It can only be useful for making cross-border payments with lower fees, and nothing else.

[avikz]

Lol! Sometimes these people act like jokers or political puppets of the ruling party. India is already enjoying the most convenient form of digital payment - UPI. Nowadays, we don't need to carry our wallet anymore while going out. We just need our mobile phone which can scan a qr code. I don't know if CBDC can provide any additional convenience here.

CBDB doesn't have even a slightest chance to destroy the crypto ecosystem in India or anywhere else.

[pakhitheboss]

Lol! Sometimes these people act like jokers or political puppets of the ruling party. India is already enjoying the most convenient form of digital payment - UPI. Nowadays, we don't need to carry our wallet anymore while going out. We just need our mobile phone which can scan a qr code. I don't know if CBDC can provide any additional convenience here.

CBDB doesn't have even a slightest chance to destroy the crypto ecosystem in India or anywhere else.

That is what I am not able to understand. When you have already digitized INR through UPI payment system then what difference would CBDC make, when used within India. For International payments some countries have already integrated UPI and some will do in the coming days. Niether there is a demand for INR then how on earth will CBDC destroy private cryptocurrency?

[teosanru]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

They are still living in the stone age in my opinion. They could have made India the most happening place for blockchain and cryptocurrency but they choose not to do so. In these critical times when you are surrounded by failing countries, they could have taken a step further in boosting the economy by accepting cryptocurrency as a part of the new-age tech revolution and implementing proper regulations as well as taxation systems. Such an attitude was accepted by the banks and their governing body.

To be honest I don't blame India for being laggard to support Cryptocurrencies, no big country in the world really did this so you have to maintain that stance on international level as well to save your place in global economics. But yes it's equally true that no big country has taken such harsh steps to curb Bitcoins or Cryptocurrencies usage except China, so what government is doing is obviously stupidity. I am not expecting them to accept crypto as a currency obviously, but I am also not expecting them to curb it's usage as an asset as well.

[pakhitheboss]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

They are still living in the stone age in my opinion. They could have made India the most happening place for blockchain and cryptocurrency but they choose not to do so. In these critical times when you are surrounded by failing countries, they could have taken a step further in boosting the economy by accepting cryptocurrency as a part of the new-age tech revolution and implementing proper regulations as well as taxation systems. Such an attitude was accepted by the banks and their governing body.

To be honest I don't blame India for being laggard to support Cryptocurrencies, no big country in the world really did this so you have to maintain that stance on international level as well to save your place in global economics. But yes it's equally true that no big country has taken such harsh steps to curb Bitcoins or Cryptocurrencies usage except China, so what government is doing is obviously stupidity. I am not expecting them to accept crypto as a currency obviously, but I am also not expecting them to curb it's usage as an asset as well.

To be honest I sometimes feel that the government of India is following the Chinese government. China banned cryptocurrency, and India put in place a stringent law that will eventually destroy the crypto business in India. China started working on CBDC and India started doing the same. Following a country won't solve India's problem.

[teosanru]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

They are still living in the stone age in my opinion. They could have made India the most happening place for blockchain and cryptocurrency but they choose not to do so. In these critical times when you are surrounded by failing countries, they could have taken a step further in boosting the economy by accepting cryptocurrency as a part of the new-age tech revolution and implementing proper regulations as well as taxation systems. Such an attitude was accepted by the banks and their governing body.

To be honest I don't blame India for being laggard to support Cryptocurrencies, no big country in the world really did this so you have to maintain that stance on international level as well to save your place in global economics. But yes it's equally true that no big country has taken such harsh steps to curb Bitcoins or Cryptocurrencies usage except China, so what government is doing is obviously stupidity. I am not expecting them to accept crypto as a currency obviously, but I am also not expecting them to curb it's usage as an asset as well.

To be honest I sometimes feel that the government of India is following the Chinese government. China banned cryptocurrency, and India put in place a stringent law that will eventually destroy the crypto business in India. China started working on CBDC and India started doing the same. Following a country won't solve India's problem.

Haha this is really true. A lot of times our government has shown exactly the same steps what the Chinese have been doing. Even though the way they take for doing this is entirely different but the result they want to reach with their steps is exactly the same as what Chinese want to do. China openly banned all the Cryptocurrencies while India didn't do it openly yet did all the things possible to ban Cryptocurrencies or remove them from system.

[elevates]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

They are still living in the stone age in my opinion. They could have made India the most happening place for blockchain and cryptocurrency but they choose not to do so. In these critical times when you are surrounded by failing countries, they could have taken a step further in boosting the economy by accepting cryptocurrency as a part of the new-age tech revolution and implementing proper regulations as well as taxation systems. Such an attitude was accepted by the banks and their governing body.

To be honest I don't blame India for being laggard to support Cryptocurrencies, no big country in the world really did this so you have to maintain that stance on international level as well to save your place in global economics. But yes it's equally true that no big country has taken such harsh steps to curb Bitcoins or Cryptocurrencies usage except China, so what government is doing is obviously stupidity. I am not expecting them to accept crypto as a currency obviously, but I am also not expecting them to curb it's usage as an asset as well.

To be honest I sometimes feel that the government of India is following the Chinese government. China banned cryptocurrency, and India put in place a stringent law that will eventually destroy the crypto business in India. China started working on CBDC and India started doing the same. Following a country won't solve India's problem.

Haha this is really true. A lot of times our government has shown exactly the same steps what the Chinese have been doing. Even though the way they take for doing this is entirely different but the result they want to reach with their steps is exactly the same as what Chinese want to do. China openly banned all the Cryptocurrencies while India didn't do it openly yet did all the things possible to ban Cryptocurrencies or remove them from system.

Actually what @pakhitheboss said is kind of true. India has a somewhat reactive & follow policy against China. If you check in the past after 2014 every step that China takes, we as a country are following china economically. There is a saying "If you cannot defeat them, then join them". India does the same economically. We are trying to replicate what china has already achieved. Wherein we should try to grow economically by our own thinking. 

[pakhitheboss]

I don't know which world is he living in? People prefer bitcoin primarily because of two reasons, one is that it gives you that edge with anonymity and you are difficult to be in radar of governments around the world if you use Cryptos while the second set of people use it for capital gains they think it's value will always keep on rising, CBDC doesn't offer you any benefit out of these two then why would anyone think that CBDC can wipe out Cryptocurrencies? Comparing bitcoin with UPI is sheer stupidity.

They are still living in the stone age in my opinion. They could have made India the most happening place for blockchain and cryptocurrency but they choose not to do so. In these critical times when you are surrounded by failing countries, they could have taken a step further in boosting the economy by accepting cryptocurrency as a part of the new-age tech revolution and implementing proper regulations as well as taxation systems. Such an attitude was accepted by the banks and their governing body.

To be honest I don't blame India for being laggard to support Cryptocurrencies, no big country in the world really did this so you have to maintain that stance on international level as well to save your place in global economics. But yes it's equally true that no big country has taken such harsh steps to curb Bitcoins or Cryptocurrencies usage except China, so what government is doing is obviously stupidity. I am not expecting them to accept crypto as a currency obviously, but I am also not expecting them to curb it's usage as an asset as well.

To be honest I sometimes feel that the government of India is following the Chinese government. China banned cryptocurrency, and India put in place a stringent law that will eventually destroy the crypto business in India. China started working on CBDC and India started doing the same. Following a country won't solve India's problem.

Haha this is really true. A lot of times our government has shown exactly the same steps what the Chinese have been doing. Even though the way they take for doing this is entirely different but the result they want to reach with their steps is exactly the same as what Chinese want to do. China openly banned all the Cryptocurrencies while India didn't do it openly yet did all the things possible to ban Cryptocurrencies or remove them from system.

Actually what @pakhitheboss said is kind of true. India has a somewhat reactive & follow policy against China. If you check in the past after 2014 every step that China takes, we as a country are following china economically. There is a saying "If you cannot defeat them, then join them". India does the same economically. We are trying to replicate what china has already achieved. Wherein we should try to grow economically by our own thinking.  

Economically, i would agree with you but not jeopardizing the integrity of the country. The more our Indian administration follows them the more they will jeopardize the development of our country. I am not against the government in every domain. I do understand that there are other major issues but why crush the middle class to get the money for development. Why not work on options and solution that make a poor grow economically into a middle class? Locking this topic as it deviates from the original topic.