The Central Bank of India has once again put pressure on the crypto market amidst the collapse in crypto prices. The governor of India's central bank stated that the 'stablecoin; poses a greater threat to economic stability than other cryptocurrencies.
At the same time, he also emphasized the need for a central bank digital currency (CBDC) to meet the market demand for alternative digital payments.
In addition, reciprocal Reserve Bank of India (RBI) governor T Rabi Sankar said that 'stablecoins' could weaken demand for the country's currency to a reasonable degree. Sankar said that introducing a CBDC would help circumvent such a scenario. CBDCs can also reduce the cost of digital payments, while increasing their efficiency.
Sankar's review is seen as a cautious stance taken by RBI towards crypto. Not only that, they have also shown a tendency to implement more aggressive regulations on cryptocurrencies.
The RBI sees that 'stablecoins' pose a greater threat to the economy, which may lead to the use of the rupee being excluded. Sankar has repeatedly warned against the widespread use of the crypto by staging it as a ponzi scheme.
India has so far been tough on crypto despite widespread crypto involvement in the country. Recently, India has passed a 30% profit tax on all crypto investments.
