Why RBI wants to ban cryptocurrency? Indian central bank calls crypto a threat to the nation.

RBI governor Shaktikanta Das dislikes cryptocurrency, wants a nationwide ban.

In a recent press conference, RBI governor Shaktikanta Das reiterates his stand against crypto adoption in India. He stated that cryptocurrencies should be banned in India as their adoption will lead to RBI ‘losing control’ over the economy.

He further clarified by saying the technology built around cryptocurrency which is DLT (Distributed Ledger Technology) should only be kept alive. DLT is the foundation of Bitcoin and other blockchains. It is also the foundation of the upcoming Digital Rupee.

Back in 2018, RBI imposed a nationwide ban on cryptocurrency which forced promising startups to shut down their operations in India. One of them was Koinex crypto exchange. In 2020, the Supreme court overruled RBI restriction, allowing crypto trading in the country.

Indian exchanges registered a heavy decline in crypto trading volume after the Indian government introduced crypto tax that stands at 30% on capital gains and 1% TDS on every transaction. Many users have switched to international exchanges like Binance to save themselves from 1% TDS charges.

The finance minister of India ‘Nirmala Sitharaman’ has urged for global crypto regulations since the technology is borderless. However, RBI governor is pushing for a complete ban.

His statement comes at a time when the central government is using blockchain technology to introduce Digital Rupee (CBDC) which is a centralized, programmable currency controlled by the Reserve Bank of India.

The crypto community strongly believe that RBI is doing everything to push Digital Rupee while forcing the government to ban cryptocurrencies. CBDC will give complete control to the central bank in tracking and controlling user spending to the last paise.

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