Crypto News
11 Feb 2022

Crypto Will Foster Innovation, Spur Economic Growth: Crypto Community

Savan

The crypto community has come out in support of crypto after the Reserve Bank of India (RBI) governor’s claim that private cryptocurrencies are a threat to India’s financial and macroeconomic stability. The community, in its response, has reiterated crypto’s potential to foster innovation, create jobs, and boost the country’s economy.

Earlier, during a press meet, RBI Governor Shatkikanta Das had said, “Private cryptocurrencies are a big threat to our financial and macroeconomic stability. They will undermine RBI’s ability to deal with issues related to financial stability. I think it is my duty to tell investors that when they are investing in cryptocurrencies, they should keep in mind that they are investing at their own risk.” The statement was made on Thursday, 10 February, after the monetary policy review.

Central Banks Worried, Governments See Value

These developments must be seen against the backdrop of the government’s recent budget announcement on a 30% crypto tax. Several players in the industry view the tax as the first step in legitimizing crypto as an asset class in India.

Central banks worldwide have expressed concerns about the rising popularity of crypto. Russia faced a similar situation where its central bank called for a crypto trading and mining ban. However, President Putin came out in support of crypto, and Russia is on the verge of regulating crypto, dispelling any fear of ban.

In recent months, governments on the other hand have increasingly taken an accommodative stance towards crypto and blockchain technology. They want to support innovation and growth the trillion-dollar crypto industry brings along without exposing investors to unwarranted risks. And regulating crypto as an asset class will be a great starting point in that direction.

Despite reiterating their faith in crypto, members of the crypto community do recognize the concerns of the RBI and the government regarding investor protection. Crypto exchangesincluding CoinSwitch Kuberhave therefore welcomed the stance taken by the government and the Reserve Bank of India (RBI) in this regard.

Ashish Singhal, CEO, and co-founder of CoinSwitch, said, “The good thing is that the government and regulators have been very consultative in their approach to the industry, and there is broad understanding that customer protection is of utmost importance. It is encouraging to see India thinking progressively about crypto at par with global counterparts like the US, Dubai, and Singapore.”

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Savan

Content Writer

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