Indian CBDC can co-exist with private cryptocurrencies, says IAMAI

TL;DR Breakdown:

• IAMAI says an Indian CBDC shouldn’t result in the ban of private cryptocurrencies.
• They can co-exist as they are meant to serve different purposes.

Recent reports confirmed that the government of India was looking to launch its central bank digital currency (CBDC), which was seen as a welcome development by many crypto enthusiasts in the country. For this reason, however, the government planned to ban other private cryptocurrencies in the country. The planned Indian CBDC shouldn’t result in the ban of private digital currencies, as every cryptocurrency is designed to serve a different purpose, according to IAMAI.

Indian CBDC shouldn’t result in a crypto ban

The Internet and Mobile Association of India (IAMAI) made this known on Monday, saying that the planned Indian CBDC is a welcome move from the government. Asides from reducing transaction costs, the industry body believes that the Indian CBDC would open doors to broader adoption of blockchain technology in the country. However, an Indian CBDC shouldn’t necessarily result in the prohibition of other digital currencies in the country, the IAMAI said.

The association would also like to point out that in a section of the media and non-expert circles, it has been indicated that the introduction of fiat digital currencies is preconditioned on ‘banning’ other crypto assets.

Private cryptocurrencies and the Indian CBDC can co-exist, according to IAMAI. Many crypto industry players don’t support the government’s idea to ban private cryptocurrencies. Rather than banning private cryptocurrencies, they believe such coins should be regulated instead.

India crypto regulation

On the 10th of February, an Indian government body planned to introduce a legal framework for crypto regulation amid plans to prohibit private cryptocurrency in the country. According to the Minister of State for Finance and Corporate Affairs, Anurag Thakur, they want to introduce a framework to regulate cryptocurrencies as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) hasn’t come up with such a framework to govern the use of digital currencies in the country.