CBDCs and crypto should coexist, not compete — CoinDCX co-founder
2024-10-27

India’s regulatory position on cryptocurrencies and central bank digital currencies continues to fuel debate, with recent discussions suggesting CBDCs could have an edge over “private cryptocurrencies.”
In an Oct. 23 X post, Sumit Gupta, the co-founder and CEO of CoinDCX, argued that CBDCs and cryptocurrencies like Bitcoin BTCUSD serve different purposes and “shouldn’t be viewed as competitors.”
His post prompted responses from the crypto community, with some warning that CBDCs could resemble “digital fiat,” potentially carrying the same inflationary risks as traditional currencies.
As India shapes its approach to crypto regulation, striking a balance between security and innovation will likely influence its role in the global digital economy.
CBDCs vs. cryptocurrencies
In an interview with Cointelegraph, Gupta said he believes both CBDCs and cryptocurrencies are valuable but serve different roles: 
Gupta added that “this centralization enables effective implementation of monetary policy, allowing for better management of inflation, liquidity and interest rates.”
However, some remain skeptical. In a recent Cointelegraph interview, Jack Booth, co-founder of TON Society, said, “CBDCs pose the greatest danger to self-sovereignty,” adding that public trust in governments is at historic lows:
Risk of banning cryptocurrencies
India has debated banning private cryptocurrencies, but Gupta said he believes the country is open to fintech innovation:
Gupta highlighted that India’s regulation has enabled crypto exchanges to comply with Financial Intelligence Unit (FIU) guidelines and tax frameworks.
This shift could be seen in March when the Supreme Court of India struck down the Reserve Bank of India’s (RBI) ban on banks’ dealings with crypto-related firms.
Striking the regulatory balance
Gupta urged the Indian government to “ensure a level playing field where all participants follow the law of the land:”
Gupta said he hopes that “relief is given on taxation” since the establishment of compliance and monitoring, which he says is being “driven through PMLA [Prevention of Money Laundering Act] initiatives.”