Not all VDAs are foreign as crypto industry bats for conducive environment in India

economictimes.indiatimes.com:

Reserve Bank of India (RBI) raised a concern over cryptocurrencies or virtual digital assets (VDAs), which might lead to the 'dollarization' of the economy, as feared by the central bank. The apex lender fears that crypto assets, issued by foreign players, could be against the country's sovereign interest. Officials said cryptos have the potential to become a medium of exchange and replace the rupee in all financial transactions.

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«Almost all cryptocurrencies are dollar-denominated and issued by foreign private entities, it may eventually lead to dollarization of a part of our economy, which will be against the country's sovereign interest,» the officials told members of the finance committee, including Jayant Sinha, chairman of the Parliamentary Standing Committee on Finance. RBI’s specific concerns towards cryptocurrencies leading to ‘dollarization’ is based on an incorrect or at least a short-sighted assumption, said the market experts. The assumption that ‘almost all cryptocurrencies are issued by foreign private entities’ is incorrect considering the number and extent of crypto projects being built in India, said Purushottam Anand, Founder, Crypto Legal. «It is only because of the current regulatory uncertainty and excessive taxation policies that many of the crypto projects have shifted their base to other jurisdictions,» he added. By the same logic, a conducive regulatory environment in India can lead to a situation where people from the world will buy cryptocurrencies issued by