India’s crypto ban proposal will target scams: Cashaa CEO

The Cashaa CEO feels that the Indian government’s latest move to ban crypto aims to crack down on scam projects and platforms in the cryptocurrency space

Gaurav Kumar, founder and CEO of crypto exchange Cashaa, believes that cryptocurrencies’ global and decentralised nature makes it impossible for the Indian government to ban them outright. Instead, he believes that the government’s latest effort is targeted towards regulating the cryptocurrency space to eliminate illicit activities in the emerging sector.

The Parliament of India’s governing body published a bulletin on Friday revealing that it would be debating on a proposed bill to prohibit all private cryptocurrencies in the country. However, the bill also says that it will create room for exceptions to promote blockchain technology and its uses.

Gaurav noted that no single government could outright ban cryptocurrencies. Most cryptocurrencies are decentralised currencies, with no central authority or body behind them.

The Cashaa CEO admits that he is confused about what the parliament meant by private cryptocurrencies. Gaurav added that the government could make it challenging for the people to use cryptocurrencies, especially for those with little knowledge of the market. “However, what we understand is that the Indian government is trying to crack down on scams that are running in the name of Bitcoin“, he added.

Gaurav is optimistic that the Indian government will develop policies and regulations that would control the scams in the sector and enable innovations to thrive.

RBI considers developing the digital rupee

The bill also seeks to create a regulatory framework for a Digital Rupee to be issued by the Reserve Bank of India (RBI). The parliament announced this after the RBI revealed that it is considering developing and issuing a digital currency.

Several central banks globally are either exploring the possibility of developing a digital currency or actively doing so. In a recent Bank for International Settlements (BIS) survey, at least 60% of the surveyed central banks reported that they were already conducting CBDC experiments or proof of concepts. Also, 88% of the 65 central banks that participated in the survey, replied that they were considering the pros and cons of issuing digital-first fiat.