CBDCs and crypto should coexist, not compete – CoinDCX co-founder
India's regulatory stance on cryptocurrencies and central bank digital currencies continues to fuel debate, with recent discussions suggesting CBCCs may have an edge over “private cryptocurrencies.”
In an Oct. 23 X Post, CoinDCX co-founder and CEO Sumit Gupta argued that cryptocurrencies like CBCC and Bitcoin (BTC) serve different purposes and “shouldn't be seen as competitors.”
His post prompted responses from the crypto community, with some warning that CBDCs could resemble “digital fiat,” carrying the same inflation risks as traditional currencies.
As India shapes its approach to crypto regulation, striking a balance between security and innovation will impact its role in the global digital economy.
Source: Summit Gupta
Related: India's Crypto Tax Is Govt's Attempt to ‘Displace' the Technology – Lawyer
CBDCs vs crypto currencies
In an interview with Cointelegraph, Gupta believes that both CBDCs and cryptocurrencies are useful, but they serve different roles:
“CBDCs are issued centrally by the country's central bank, ensuring full control over supply, delivery and use.”
“This centralization will enable effective implementation of monetary policy, allowing for better control of inflation, inflation and interest rates,” Gupta added.
However, some are still skeptical. “CBDCs pose the biggest threat to self-sovereignty,” Jack Booth, founder of the Tone Society, said in a recent Cointelegraph interview, adding that public trust in government is at an all-time low.
“Public trust in governments, especially in the West, is at an all-time low. The introduction of CBDCs, which give unelected officials full control over your money, will exacerbate the problems that fueled and fueled Bitcoin's growth years ago.”
Related: AI threatens financial stability, India's central bank governor warns
The risk of blocking cryptocurrencies
India has debated banning private cryptocurrencies, but Gupta says he believes the country is open to fintech innovation.
With more than 75,000 core Web3 talent and more than 450 Web3 startups in India, various Web3 reports suggest that implementing a ban could dampen the spirit of entrepreneurship and hinder the growth of blockchain technology.
Gupta highlighted that Indian regulation has enabled crypto exchanges to comply with Financial Intelligence Unit (FIU) guidelines and tax frameworks.
This change could be seen in March when India's Supreme Court banned the Reserve Bank of India (RBI) from dealing with crypto-related companies.
Related: Supreme Court of India's YouTube channel hacked to shill XRP
Striking the balance of control
Gupta urged the Indian government to “ensure a level playing field where all participants follow the laws of the land.”
“Unfortunately, there are still players who do not comply with various parameters. […] Taxation is still high on our agenda. Time and again, various reports have confirmed that tax has driven more users to offshore platforms.
Gupta said he was hopeful that “relief will be given on taxation” since the establishment of respectful supervision and monitoring, which he said is being “led by the PMLA”. [Prevention of Money Laundering Act] motivation”
Magazine: Rise of Mert Mumtaz: ‘Perhaps more FUD Solana than anyone else'
