India’s regulatory position on cryptocurrencies and central bank digital currencies continues to fuel debate, with recent discussions suggesting CBDCs could have an edge over “private cryptocurrencies.”
In an Oct. 23 X post, Sumit Gupta, the co-founder and CEO of CoinDCX, argued that CBDCs and cryptocurrencies like Bitcoin (BTC) serve different purposes and “shouldn’t be viewed as competitors.”
His post prompted responses from the crypto community, with some warning that CBDCs could resemble “digital fiat,” potentially carrying the same inflationary risks as traditional currencies.
As India shapes its approach to crypto regulation, striking a balance between security and innovation will likely influence its role in the global digital economy.
Source: Sumit Gupta
Related: India’s crypto tax is a gov’t attempt to ‘displace’ the tech — Lawyer
CBDCs vs. cryptocurrencies
In an interview with Cointelegraph, Gupta said he believes both CBDCs and cryptocurrencies are valuable but serve different roles:
“CBDCs are issued centrally by the nation’s central bank, which ensures complete control over their issuance, supply and usage.”
Gupta added that “this centralization enables effective implementation of monetary policy, allowing for better management of inflation, liquidity and interest rates.”
However, some remain skeptical. In a recent Cointelegraph interview, Jack Booth, co-founder of TON Society, said, “CBDCs pose the greatest danger to self-sovereignty,” adding that public trust in governments is at historic lows:
“Public trust in governments, especially in Western countries, is at its lowest level ever. The introduction of CBDCs, which would give unelected officials complete authority over your funds, would only worsen the existing problems that prompted and fueled the development of Bitcoin many years ago.”
Related: AI risks financial stability, warns Indian central bank governor
Risk of banning cryptocurrencies
India has debated banning private cryptocurrencies, but Gupta said he believes the country is open to fintech innovation:
“Various Web3 reports have indicated that with…..
