India, despite its reluctance to make cryptocurrency part of its financial systems, has shown growth in placing the country’s fiat currency on the blockchain. The Indian Digital Rupee CBDC pilot project was launched earlier this month, around the same time the cryptocurrency exchange FTX collapsed, wiping out more than $200 billion (roughly Rs. 16,32,940 crores) from the global crypto market. Industry insiders have now focused on whether Indians need to tie CBDCs to the crypto sector and worry about financial risks amid the ongoing meltdown in the crypto industry.
CBDCs And the Digital currencies, both of which are built on the blockchain, which is a type of distributed ledger technology. The main difference between them is that cryptocurrencies are issued by central banks and are regulated, but cryptocurrencies are not controlled by central banks and are largely unregulated.
In a conversation with Gadgets 360, Alankar Saxena, CTO and Co-Founder of Mudrex reminded Indians that our digital banking currency is only the regular rupee in blockchain It is not affected by the volatility of the cryptocurrency market.
“The digital rupees CBDC will gain prominence regardless of downturns in the crypto market. There will not be any significant impact on the digital rupee. Alternatively, it could help people transition to a cashless system, leading to improved transparency.”
Earlier this month, Governor of the Reserve Bank of India Shaktikanta Das The launch of a digital currency pilot by the Central Bank of India has been described as a landmark moment in the country’s currency history.
“This is something we have to proceed very carefully. It will try to launch a CBDC in a full-fledged way in the near future. This is the first time the world has done it. We don’t want to be in a hurry, we want to learn from the experience,” Das said. He said in time.
With CBDC trials, India is making clear progress in further digitizing its economy, and the country should not delay the process any further, say industry insiders. The Demo launch It is said to have aroused great interest in India.
The Reserve Bank of India takes the first step to implement crypto in India by launching the digital rupee pilot project.
The payment system is expected to be affordable, accessible, convenient, efficient, safe and secure.# encrypt # kryptonius #cryptoforce # Cryptowindia
– Akshit Khanna (@khannaakshit29) November 4, 2022
3. How do you use the electronic rupee?
Retail version is token based. On a grand scale, you can know the recipient’s public key and transfer money to them using your private key. In simpler terms, money transfer through UPI or the same process or like Paytm wallet funds in yesteryears.
– Siddharth Alok (@sidalok7) November 6, 2022
Speaking to Gadgets 360, Mohammed Roshan, co-founder and CEO of crypto-focused fintech GoStats, said anyone worried about financial risks around CBDCs can relax. He highlighted that the RBI has repeatedly made it clear that central bank currencies are completely different from cryptocurrencies and aim to advance existing financial systems.
“out of the way RBI He put CBDC, looks like it’s very different from crypto. I don’t think the RBI will see a correlation between CBDC and the crypto market slowdown and will continue to implement its plans,” Roshan noted.
In a recent report, KuCoin cryptocurrency exchange He claimed that India currently has more than 115 million crypto investors, making up 15 percent of its massive population.
However, the pressure to invest in the cryptocurrency market has peaked in Indian cities. CoinKickoff recently included Bengaluru, Chennai, and Ahmedabad are among the twenty most “crypto-stressed” cities in the world.
The market downturn has raised significant concerns about getting involved in the crypto sector or related projects. The layoffs that have plagued the sector in the wake of the cryptocurrency crash have also fueled tensions among people working in the industry.
Ongoing regulatory project is working on encryption laws It has also emerged around the world as the main reason why investing in these digital assets is considered stressful in many parts of the world, including India.
Cryptocurrency is an unregulated digital currency that is not legal tender and is subject to market risk. The information in the article is not intended to be and does not constitute financial advice, business advice, or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any recommendation, forecast or other information contained in the article.