The Central Bank of India is once again putting pressure on the crypto market amid falling crypto prices. The governor of the central bank of India stated that ‘stablecoin; poses a greater threat to economic stability than other cryptocurrencies.
At the same time, he also stressed the need for a central bank digital currency (CBDC) in meeting the market demand for alternative digital payments.
In addition, Reserve Bank of India (RBI) deputy governor T Rabi Sankar said that ‘stablecoin’ could weaken the demand for the national currency at a rapid rate. Sankar said that introducing CBDC would help avoid such a scenario. CBDC can also reduce the cost of digital payments, while increasing its efficiency.
Sankar’s comment is seen as a cautious stance taken by the RBI towards crypto. Not only that, they have also shown a tendency to implement more aggressive rules against crypto.
The RBI sees that ‘stablecoin’ poses a greater threat to the economy, which could lead to the use of the rupee being sidelined. Sankar has repeatedly warned against the widespread use of crypto by calling it a ponzi scheme.
India has so far cracked down on crypto despite widespread crypto involvement in the country. Recently, India has passed a 30% profit tax on all crypto investments.
