Will India Ban Cryptocurrencies to Prioritize Its CBDC?

India is considering a ban on Bitcoin and other cryptocurrencies to prioritize the development of its Central Bank Digital Currency (CBDC).

As reported  by CryptoDnes, regulators are concerned about the risks associated with private cryptocurrencies while promoting the safer digital rupee, currently in pilot testing since November 2022.

An anonymous official noted that the CBDC could offer similar benefits to cryptocurrencies but with better security. The government is consulting experts on the matter, who argue that CBDCs could enhance financial inclusion by enabling targeted fund distribution.

RBI Governor Shaktikanta Das emphasized that the programmability of CBDCs could transform subsidy delivery and support various financial applications.

While no final decision has been made on the crypto ban, consultations are ongoing, influenced by the G20’s endorsement of stricter cryptocurrency regulations.

CoinDCX CEO Sumit Gupta responded to the CBDC versus crypto debate, asserting that both serve distinct purposes and can coexist to strengthen the financial ecosystem. He urged regulators to see the complementary roles of CBDCs and cryptocurrencies.