Investors aren't the only ones paying attention to virtual currency trading these days. Wild market volatility has brought this budding asset class to the attention of central bankers in the United States, Europe, China, India and elsewhere.
As a capstone to this newfound interference, Paytm Payments and other gateways in India have reportedly completely stopped allowing transactions on the country's crypto exchanges. Paytm has stopped facilitating transactions that would have resulted in an inflow of rupees from (or into) a Paytm bank account to make a cryptocurrency payment.
Nischal Shetty, founder and CEO of crypto startup WazirX, told the site that the gateway ceased operations after ICICI Bank refused to allow crypto-related payments.
As Reuters reported earlier this month, India's central bank has “informally” told financial institutions (FIs) to cut ties with crypto exchanges and traders. This maneuver comes despite a Supreme Court ruling that banks can indeed interact with and provide services to crypto players. According to Reuters, the central bank's move comes as the country is in the process of “enacting legislation” that would completely ban cryptocurrencies.
Regardless of whether the law materializes, India's central bank's efforts are in line with those of other central banks around the world. The People's Bank of China also said this week that digital currencies are not physical and should not be used in financial services or markets.
And, as reported by PYMNTS, the China Internet Finance Association, China Bankers Association, and China Payment and Payment Association stated that “financial institutions, payment institutions, and other member organizations need to seriously strengthen their social responsibilities.” . You may not use virtual currency in the pricing of products or services, underwrite insurance business related to virtual currency, include virtual currency in your insurance liability coverage, or provide any other services directly or directly to your customers. It must not be provided indirectly. ”
There appears to be no safe haven for cryptocurrencies here in the United States either. On Thursday (May 20), Federal Reserve Chairman Jerome Powell said in a video message that virtual currencies could pose “potential risks to users and the broader financial system.” Ta. He said more attention needs to be paid to regulation and “private sector payments innovators who fall outside the traditional regulatory arrangements that currently apply to banks, investment companies and other financial intermediaries.” said. Making payments taking into account, inter alia, changes in value. ”
Of course, the Federal Reserve is exploring central bank digital currencies (CBDCs), and China is at the forefront of major economies starting to implement digital fiat currencies. It is far-fetched to think that major central banks are suppressing the “wild west” aspects of crypto trading and speculation for their own purposes, as evidenced by China, India, and the United States. isn't it.
Proponents of cryptocurrencies say the appeal of Bitcoin and other products is tied to their ability to circumvent traditional centralized financial pipelines. This would include banks and central banks that have a vested interest in maintaining the status quo when it comes to maintaining order and monitoring monetary policy and foreign exchange reserves. Involving banks in efforts to pave the way for cryptocurrencies to gain (more) mainstream acceptance among institutional investors and consumers could pave the way for smooth adoption of CBDCs without significant competition. There is.
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