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Indian Government Believes Bitcoin Poses Major Threat to Rupee

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Mon, 02/04/2019 - 14:43
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  • Forget drugs and terrorism. Bitcoin’s potential to replace fiat currencies is the main reason why governments reject it

Cover image via U.Today
Contents

 

Those who scoff at the possibility that Bitcoin could eventually replace fiat money have a lot of homework to do. According to Quartz India, Subhash Chandra Garg, the current Economic Affairs Secretary of India, is certain that cryptocurrencies pose a serious threat to India’s national currency.    

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Bitcoin as a disruptor  

Bitcoin is constantly bashed by critics as a breeding ground for money laundering and even terrorism. However, its disruptive potential is also one of the main reasons why China and other countries retain a hawkish stance towards crypto.

According to one industry insider, who wanted his name to remain undisclosed, the fact that Bitcoin could destabilize the local market remains a major concern for the Garg panel that is tasked with drafting cryptocurrency regulations in India.

An overreaction

Koinex’s Rahul Raj states that such concerns are completely irrational, given that the pace of Bitcoin adoption is way too slow to pose a serious threat to the global financial system. For that scenario to turn into reality, Bitcoin has to solve its scalability pain points.

U.Today reminds readers that cryptocurrency trading was banned by the Reserve Bank of India (RBI). Such a move drew ire from the cryptocurrency community.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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