The Indian government would be tabling a Bill in the Parliament over the next few days which would seek to build a framework for the introduction of CBDCs in the country while at the same time seeking to ban what it calls ‘private’ cryptocurrencies.
It looks as though many of the bigger countries are beginning to look at CBDCs as a way of controlling the spread of crypto usage among their population. It is not very sure whether this is the right strategy to follow but instead of going for an outright ban on cryptos, they are likely to discourage the use of cryptos and restrict them to investing instruments and ensure that CBDCs are the ones that are used for payments and another actual real-world usage. The authorities believe that this strategy would help to wean away users from the cryptocurrencies and would ensure that they would continue to be able to track the movement of funds through their system.
This is why we are seeing that the Indian government is seeking to bring in CBDCs and at the same time, trying to ban ‘private’ cryptos but so far, it has not made it clear what ‘private’ crypto would mean. Many theories describe what private crypto would mean but all those theories are just in the public domain for now and the authorities have not yet clarified on the same and unless that clarification comes in, the FUD is most likely to continue. But what is indeed clear is the fact that regulations are coming in for the crypto industry in India and considering the potential for the growth of the industry within the country, it is hoped by the crypto enthusiasts that they would be spared a total ban and the government would encourage the use of specific cryptos to spur technology growth and expansion.
But with the tabling of the Bill still, a few days away, it is likely that the crypto markets within India are likely to be rocked by various kinds of rumors as the critics and the supporters continue to discuss what is best for the industry. This news has also led to a crash of the crypto prices within the centralized exchanges in India with many of the top cryptos available for a discount of around 20%.