Industry body, Internet and Mobile Association of India (IAMAI), has said the creation of an official digital currency for India isn’t “pre-conditioned” on banning other crypto assets. The industry body welcomed the government’s plan to introduce an official digital currency regulated by the Reserve Bank of India (RBI).
“In fact, existence and use of crypto assets by Indian consumers opens up a wide scope for Indian entrepreneurs to issue such currencies, and it is likely that Indians who compise 15% of the global buyers will prefer an Indian crypto asset,” the non-profit entity, which counts companies like Amazon, Google, Flipkart among its members, said in a statement. It said that a digital fiat currency and crypto assets can co-exist.
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“The association believes that an official digital currency regulated by the government will give impetus to the broader application of the distributed ledger technology and will create avenues of fintech innovation that are yet to be explored within the country,” the IAMAI said.
The future of crypto assets in India have been under a question for a few weeks now, ever since a bill proposing the ban of “private cryptocurrencies” was listed on the agenda for the Budget session of the Parliament. The same bill is expected to introduce an official digital currency for the country, which will be issued and controlled by the RBI.
Crypto experts have pointed out that the definition of “private cryptocurrencies” in the bill will determine the future of the assets. Crypto trading in India has grown substantially over the past few years, and especially in 2020. Exchanges in India have seen over 500% growth in trading values in 2020. The country’s top exchange, WazirX, reached the $1 billion mark in trading value in 11 days in February, which is double the value reached in the same time frame in January. Competing platform CoinDCX also said it has seen a rise in crypto trading this month.
According to experts, global developments like Tesla’s $1.5 billion investment in Bitcoin and Mastercard announcing that it will soon accept cryptocurrencies on its network, have bolstered investors’ hopes in India.