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CoinDCX founder Sumit Gupta believes that central bank digital currencies (CBDCs) should not be viewed as competitors to cryptocurrencies, and have value due to their control by national central banks. Yet Jack Booth, co-founder of TON Society, warns CBDCs could risk personal freedom by handing control of funds to non-elected officials. In India, regulation continues with Gupta urging the Indian government to provide a fair framework for all participants, and stresses the need for taxation relief.

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There’s been a lot of back-and-forth in India about cryptocurrencies and digital currencies from central banks. There’s a strong argument stating central bank digital currencies (CBDCs) might have an upper hand over privately-owned cryptocurrencies.

Sumit Gupta, who started CoinDCX, recently wrote that CBDCs and cryptocurrencies like Bitcoin shouldn’t be viewed as competitors since they serve very different purposes. His post caused quite a stir in the crypto world, with some folks warning that CBDCs might just end up being “digital cash,” carrying the same risks of inflation as regular currencies.

India is still figuring out how to handle cryptocurrency regulation, and striking a balance between safety and innovation is crucial for India to play a significant role in the global digital economy.

As per Gupta, both CBDCs and cryptocurrencies have their distinct values and uses. CBDCs, which are centrally controlled by the national central bank, have full control over their release, supply and use. The centralized nature of CBDCs allows the implementation of monetary policies effectively, leading to better management of inflation, money supply and interest rates.

But not everyone agrees with Gupta. Jack Booth, co-founder of TON Society, says CBDCs could be a big risk to personal freedom. He noted that people’s trust in governments, especially in Western countries, is at an all-time low. Adding CBDCs to the mix would give non-elected officials complete control over personal funds.

There has been some talk about India banning private cryptocurrencies. Yet Gupta strongly believes India is receptive to innovations in financial technology. He emphasized that a ban could stifle the enterprising spirit and hinder advancements in blockchain technology.

Gupta has also stressed that India’s rules and regulations have enabled cryptocurrency exchanges to comply with the Financial Intelligence Unit’s guidelines and tax frameworks. A clear shift was observed in March when the Indian Supreme Court reversed the Reserve Bank of India’s ban on banks dealing with crypto.

Finally, Gupta urged the Indian government to provide a level playing field for all participants while ensuring everyone follows the law. He expressed the need for relief on taxation since the establishment of compliance and monitoring through initiatives for prevention of money laundering.

Source: Cointelegraph