Crypto Monopoly Frightens Indian BankersColin Baseman
India is one of the most densely populated countries on the globe and this is what makes it appealing – many investors come from that part of the world. Also, there is a great part of traders across India who are turning for cryptocurrencies claiming that this sort of asset is more stable, secure, and safe for people willing to make long-term investments.
Bankers look at cryptocurrencies from a different angle. They know about the recent movements on the crypto market and what is now occurring there makes them wonder whether financial institutions should worry – as many participants believe, cryptos may soon monopolize the entire space.
There are plenty of crypto enthusiasts among bankers across the entire country and they are ready to admit that cryptocurrencies have a bright future and can offer the population a wider variety of alternatives to achieve success. Chief economists feel sure that CBDC should not hold a monopoly. The same statement applies to private digital currencies.
Raghuram Rajan is one of the official representatives who say that private cryptocurrencies are likely to have a future. This tendency will remain even when the country’s central banks start rolling out their native e-currencies. The governor has gained plenty of experience while working as an economist at the Monetary Fund and according to any of the top-ranked currencies may cause threat.
However, this will happen only if it comes to the crypto industry to hold a monopoly. Besides the numerous concerns and nuances that leading economists focus on, they believe that there might be additional private e-currencies. They, in turn, will play various important roles. More than that, they will guarantee serious competition to the currently existing currencies.
BTC as a Speculative Asset
Indian banks emphasize that in the nearest future, the top-ranked currencies will function as a store of value. Maybe they will be used as speculative assets. What professionals are sure about is that cryptos won’t act as a medium of exchange. It’s natural that Indian banks compare BTC to gold. They predict that Libra is a great instrument for daily transactions.
On the other hand, experts express their doubts about financial institutions issuing CBDCs. They state that banks can obtain plenty of data through the use of e-currencies. Nevertheless, people are very unlikely to feel safe sharing all their private payment details. Organizations will have to decide what sort of information they would like to gather and how they would plan to utilize it.
We can consider private digital currencies and follow its principles. Bankers, though, point out that if there is a monopoly, there will be inevitable issues related to it. In fact, the management of the currency and safeguards on the banks are just some of such nuances. Experts admit that having competition is a beneficial practice. It will be of great use to all parties, including private assets and CBDCs.
Indian banks are ready to face challenges. Their representatives state that they have already studied and analyzed the situation. They can predict further movements and have figured out all possible scenarios. Many participants are eager to see private e-currencies co-exist with CBDCs – this is how all parties would see which direction each of them takes.
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