Digital currency exchanges hope that the existing cryptocurrencies can coexist with CBDC, with the RBI currency trading on their platforms
The Reserve Bank of India’s plan for a central bank digital currency (CBDC) has generated a mixed response from digital currency exchanges.
These exchanges hope that the existing cryptocurrencies can coexist with CBDC, with the RBI currency trading on their platforms. They are also looking for clarity on the rules governing crypto assets.
Some observers also see a limited upward trend in CBDC in an already robust digital payments ecosystem.
“It’s a huge step forward in building a fully digital economy and we believe that other crypto assets can coexist with this digital currency as well. It is the regulation of other crypto assets that benefits investors, corporations and the economy, ”said Avinash Shekhar, Co-CEO of Zebpay.
“We believe that the Indian government will issue clear rules for crypto assets and these will be well calibrated after discussion with various stakeholders. We are optimistic that the government will work out guidelines that will enable all Indians to participate in this technological revolution, ”Shekhar said.
“This is a significant development for the global crypto space and great news for crypto exchanges and investors in India. As countries like Russia and China are also taking similar steps, the introduction of the CBDC gives our country India the leading position in this area, ”said a spokesman for Coin DCX.
With CBDC promising lower volatility while offering the same promise as crypto assets, exchanges will be happy to add them to their portfolio, the spokesman said.
Sathvik Vishwanath, CEO and co-founder of Unocoin: “Different countries have different infrastructures for domestic payments and we have already deployed a very robust stack from RBI. That means the benefit we can get from CBDC is limited. “
He said 80 percent of countries have a poor payment structure where cryptocurrencies make transactions free and fast, which explains the high value of cryptocurrencies.
“In India, we can benefit from this added value by getting involved through investments. CBDC does not seem to be the order of the day in India, ”said Sathvik Vishwanath, CEO and co-founder of Unocoin.
However, the RBI has questioned the need for private virtual currencies (VCs). “Developing our own CBDC could open up the public to uses that all private virtual currencies can offer, thus maintaining the public preference for the rupee. It could also protect the public from the abnormal volatility some of these VCs are experiencing, ”RBI Deputy Governor T Rabi Sankar said last week.