Although the RBI has opposed crypto, its own CBDC is ready to target one million users
Regulations have become a critical factor influencing the market and its participants in crypto. Regulations in various countries serve as a crucial factor in determining the credibility and legitimacy of cryptocurrencies. The presence of robust regulatory frameworks ensures investor protection, prevents illicit activities, and fosters trust within the crypto ecosystem.
Banks and fintech institutions have been at the forefront of advocating for regulatory clarity, as it allows them to participate more actively in the crypto space. These regulations not only establish a secure environment but also pave the way for wider adoption and integration of cryptocurrencies into traditional financial systems.
According to CFO, the Reserve Bank of India (RBI) has made no bones about its being averse to cryptocurrency, ever since it emerged on the horizon in the country a few years ago. RBI Governor Shaktikanta Das has sought an outright ban on it while making his views clear on it several platforms in the last two years.
“Crypto should be banned, given its no underlying value in the market. Just like every asset, every financial product comes with some underlying value, hence the value of crypto is based on the make-believe factor,” he had said in January this year during a media event.
“Crypto is a form of gambling without any underlying value and is nothing but a 100 percent speculation world,” he had said in the same event while seeking a ban on it. If crypto is allowed in India, the RBI may likely fail in monitoring the transactions, Das has said.
Although the RBI has vehemently opposed cryptocurrency, its own Central Bank Digital Currency (CBDC), which had been launched as a pilot project on December 1, 2022, for retail use, is ready to target one million users by the end of this month.
The RBI also has plans to make the united payments interface (UPI) platform fully interoperable with the CBDC. “We are not targetting a specific date, it will be a calibrated approach,” T. Rabi Sankar, deputy governor, RBI had said on June 8.
“We want to assess the impact and learn as we go. By the end of June, we are targeting 1 million CBDC users. We are also planning to make UPI QR code interoperable with CBDC,” he added.
Know about the first US crypto regulation draft
The introduction of the first US crypto regulation draft has generated excitement as it puts forth new regulations primarily designed to increase investor protection and provide clarity to SEC regulations. If enacted, this bill could have significant implications for the future of the broader digital asset ecosystem.
Republican lawmakers in the United States have introduced a draft bill aimed at establishing a more defined regulatory framework for cryptocurrencies. The Bill, Digital Asset Market Structure Discussion Draft, improves the existing regulatory framework that lacks sufficient consumer protection.
It proposes a functional framework providing regulatory clarity for digital asset firms and bridging the gap between the authorities of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The draft seeks to grant the CFTC authority over digital commodities and clarify the SEC’s jurisdiction over digital assets used as investments.
Additionally, it strives for customer protection by requiring all crypto entities to register with the SEC and CFTC. Representatives Patrick McHenry from North Carolina and Glenn Thompson from Pennsylvania, the co-authors, stated that the draft provides much-needed clarity in the digital asset ecosystem and provides regulatory certainty for emerging technologies.
