India is one of the countries that are constantly into are blockchain news for its hard stance towards cryptocurrencies. The government of India believes there are high risks associated with cryptocurrencies such as money laundering and terrorism. Now, high-ranking officials are working hard on drafting a new regulatory framework but new concerns emerge and this time regarding the national rupee.
The group of officials who are working on drafting a cryptocurrency regulatory framework is being led by the economic affairs secretary at the ministry of Finance Subhash Chandra Garg. People on the inside claim that the panel is worried about the price of the national currency if cryptocurrencies become a method of payment.
An anonymous representative said:
‘’If bitcoin and other digital currencies are going to be allowed to be used for payments then whether it will end up destabilizing the fiat currency is a major concern for them (the Garg panel).The overall impact on the financial ecosystem that it is likely to have is still unclear and it has been a challenge to convince them on this particular point.’’
It’s not untrue that implementing cryptocurrency will affect the national currency but according to the founder of the crypto exchange Koinex, there will be a ‘’considerable time before that concern even comes up.’’
Koinex CEO thinks that is too early to worry about the impact on the national currency since globally only a tiny portion of payments are made by using digital currencies and that will continue to go on until blockchain becomes the next MasterCard.
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