India’s regulatory stance on cryptocurrencies and central bank digital currencies (CBDCs) has been a hot topic, with many questioning if CBDCs will overshadow “private cryptocurrencies.” However, Sumit Gupta, CEO and co-founder of CoinDCX, believes the two can coexist.
In an Oct. 23 post on X, Gupta highlighted that CBDCs and cryptocurrencies, like Bitcoin, serve different purposes and should not be seen as rivals.
The post spurred discussion within the crypto community, with some cautioning that CBDCs could act like “digital fiat,” potentially facing the same inflationary pressures as traditional money. In a recent interview with Cointelegraph, Gupta explained his view: “CBDCs are issued centrally by a nation’s central bank, allowing them to manage inflation, liquidity, and interest rates effectively.”
Not all are convinced, however. Jack Booth, co-founder of TON Society, sees CBDCs as a threat to personal freedom, arguing that public confidence in government is waning, particularly in Western countries. “CBDCs would only add to existing issues that led to the creation of Bitcoin years ago,” Booth noted.
While India has discussed restricting private cryptocurrencies, Gupta emphasized that India has a thriving Web3 landscape with over 75,000 professionals and 450 startups in the sector. He believes that over-regulation could hinder blockchain progress and squash entrepreneurial drive.
Recent regulatory developments reflect a more balanced approach. India’s Supreme Court overturned the Reserve Bank of India’s ban on banks dealing with crypto-related firms in March, opening the door for further fintech innovation.
Gupta urged the Indian government to ensure fair regulations across the board. “There are still non-compliant players,” he said, mentioning that high tax rates push users toward offshore exchanges.
He also hopes to see a tax reduction, citing the importance of compliance and regulation under India’s Prevention of Money Laundering Act (PMLA).