Report: Indian Government Concerned Cryptocurrencies Could Undermine the Rupee

The Indian government panel tasked with drafting crypto regulation is reportedly worried that cryptocurrencies could destabilize the rupee if they are accepted as payments. Its concern came to light despite evidence that cryptocurrencies do not currently pose a threat to financial stability.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Impact on the Rupee

The Indian government committee tasked with developing the regulatory framework for cryptocurrencies is reportedly “obsessed” with the impact they may have on the rupee if they are allowed to be used in payments, Quartz India reported. The committee is headed by Subhash Chandra Garg, Secretary of the Department of Economic Affairs.

“If bitcoin and other digital currencies are going to be allowed to be used for payments then whether it will end up destabilising the fiat currency is a major concern” for Garg’s panel, the publication quoted an unnamed representative from the crypto ecosystem who recently met with the ministers as saying. “The overall impact on the financial ecosystem that it is likely to have is still unclear and it has been a challenge to convince them on this particular point.”

If bitcoin and other digital currencies are going to be allowed