Indian Government will have to recognize the importance of crypto industry as an alternate source to revive national economy. Crypto represents the 17th century phenomenon wherein people realized that stock trading is the most profitable trading capable of returning high profits. But the Governor of Indian Central Bank suggests that economic instability is because of crypto usage.
The head of Indian central bank, Shaktikanta Das, is the most concerned Indian man against the use of cryptocurrencie. He is of the view that the use of crypto is causing huge instability within the national economy. His statement was thought to be vague by Indian crypto industry as he did not mention which type of crypto was raising concerns. But it may be assumed that the Governor of Reserve Bank of India was referring to all cryptocurrencies.
However, Indian crypto industry was in fact booming and there were investors lined up at crypto platforms for acquiring crypto assets. In fact, very recently, one of the major crypto exchanges of India, WazirX, has announced to introduce advanced crypto products. It was announced by WazirX that it is time to introduce Non-Fungible Tokens (NFT) in India. Similarly, there are high number of Bitcoiners which are apparently residing in India.
But the problem is with the Indian Government and central bank. Both have come to a consensus that in order to stabilize national economy, banning crypto is the ultimate solution. While on the other hand, crypto industry’s argument is that solution does not lie in banning crypto. In fact Indian Government has to come up with a foolproof plan to stabilize the economy and allow crypto industry to flourish.
Many Indian crypto experts are arguing that the problem is within the Reserve Bank of India. They claimed that the central bank is faced with multiple challenges with which it is having difficulties. Since past year, the bank has also not held any meeting of Monetary Policy Committee. However, the bank has proposed the meeting but it is expected that there wouldn’t be any change in the repo rate. Crypto experts are arguing that economic recovery process has failed miserably because of the 3rd wave of Covid-19 pandemic.
Movement restrictions as well as imposition of lockdowns are hurting supply and demand and therefore the economy. While the decrease in supply and demand is impacting upon economic recovery yet the inflation rates has increased significantly. Already in 2020, the inflation rate in India was over the expected threshold of Reserve Bank of India. Further addition into the inflation will mean more instability in the economy.
So is it really the crypto usage which is concerning the Governor of the Indian central Bank? Or is it the bank’s inability to stabilize the gradually deteriorating national economy and putting the blame upon crypto industry?