Re:Cryptocurrencies – An Assessment by Reserve Bank of India
by sundarurfriend on Wednesday February 16, 2022 @09:23AM
(#30360295)
> yet advise banning it as it competes as a currency to the Rupee.
You're (perhaps unintentionally) misrepresenting their case as saying "competes as a currency" being the main reason for the ban. They lay out the many reasons for it, including (and I'm giving their opinion here, not mine) its inherent lack of stability, the energy usage, control being in the hands of foreign companies/economies, and also that when people try to use it as a currency, it can lead to destabilization because it tilts the advantage in favour of currencies of A[dvanced]E[conomie]s. The last point is the one you mention, and even it isn't a concern about cryptocurrencies themselves being competition, just it opening doors for stronger and potentially destructive competition from already stronger currencies.
You're (perhaps unintentionally) misrepresenting their case as saying "competes as a currency" being the main reason for the ban. They lay out the many reasons for it, including (and I'm giving their opinion here, not mine) its inherent lack of stability, the energy usage, control being in the hands of foreign companies/economies, and also that when people try to use it as a currency, it can lead to destabilization because it tilts the advantage in favour of currencies of A[dvanced]E[conomie]s. The last point is the one you mention, and even it isn't a concern about cryptocurrencies themselves being competition, just it opening doors for stronger and potentially destructive competition from already stronger currencies.