Cryptocurrency will be banned and with the help of the bill, the Reserve Bank of India will get a convenient framework to issue its official digital currency.
Our average daily sign-up rate during the recent bull cycle was 8,000-10,000 per day. Right now, we are getting around 5,000-6,000 new users every day
Some cryptocurrency exchanges are seeing a drop in new sign-ups. The reason for this is the ambiguity about cryptocurrencies in India. Actually, the Central Government is going to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the Parliament during the winter session. Information related to this bill was revealed last week, which said that private cryptocurrencies will be banned and with the help of the bill, the Reserve Bank of India (RBI) will get a convenient framework to issue its official digital currency.
New sign-ups on cryptocurrency exchanges drop
According to the Economic Times report, some crypto exchanges have reported a 15-50% drop in new sign-ups so far in November. After some investors squared off their positions and switched to ‘wait and watch’ mode, they have also registered a decline in their monthly transactions. BuyUcoin CEO Shivam Thakral said, “We have seen a 20% drop in new sign-ups on a week-on-week basis. Our average daily sign-up rate during the recent bull cycle was 8,000-10,000 per day. Right now, we are getting around 5,000-6,000 new users every day.
However, some of the major exchanges claimed that they have not seen any major changes, especially in the trading patterns of mature investors. Ashish Singhal, CEO, CoinSwitch Kuber, said, “We have not seen any significant change in these numbers on our platform as we largely cater to retail investors who make long-term investments.” Smaller exchanges said they were seeing stable sign-ups. Satwik Vishwanath, Co-Founder and CEO of Unocoin, said, “We have seen an increase in the number of sign-ups as people who already have crypto assets through mining or payment are opening accounts and selling them.
Central bank digital currency proposal in upcoming bill
The Economic Times wrote in a report quoting a top government official that the proposal for a Central Bank Digital Currency (CBDC) may be included in the upcoming bill. The government’s approach to cryptocurrencies may have been careful and measured, the official said. It will be started with CBDC. The central bank will launch it and in future RBI authorized and regulated private stable coins may be launched. The official said cryptocurrencies could disintermediate and replace traditional players in the financial market such as bank accounts and credit cards. Disintermediate means removing the middleman from the transaction supply chain.
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