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Indian Crypto Market Gets First Rupee-Based Index Despite Uncertain Regulations

2 mins
4 June 2022, 14:30 GMT+0000
Updated by Ryan James
4 June 2022, 14:30 GMT+0000
In Brief
  • India-based crypto exchange CoinSwitch Kuber has launched the Crypto Rupee Index (CRE8).
  • However, India’s first benchmark index comes at a time of regulatory uncertainty in the country.
  • The central bank continues to maintain a negative crypto stance, predicting CBDC will replace private crypto.
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CoinSwitch Kuber, one of India’s two crypto unicorns, has launched the Crypto Rupee Index (CRE8) as part of India’s first benchmark index.

As per the exchange release shared with Be[In]Crypto, the index will measure the performance of the crypto market in the Indian rupee (INR).

But, CRE8 will track the performance of only eight major virtual assets for now, which constitute over 85% of the total capitalization of the Indian crypto market on the CoinSwitch app, the release noted. The assets include BTC, ETH, BNB, XRP, ADA, SOL, DOT, and DOGE.

Source: Exchange

Ashish Singhal, Co-founder and CEO of CoinSwitch stated, “The index provides a trustworthy, real-time view of the Indian Rupee-denominated Crypto market based on actual trades, enabling Indian users to make informed investment decisions,”

That said, the launch comes at a time when the crypto industry in India awaits legislative certainty for the sector. Meanwhile, weak market conditions persist as the global cryptocurrency market cap remains under $1.3 trillion at the time of writing.

RBI predicts upcoming CBDC will replace private crypto

Deputy Governor of Reserve Bank of India (RBI) T Rabi Sankar recently predicted that the central bank digital currencies (CBDCs) could ‘kill’ private crypto.

The Economic Times cited Sankar remarking at an IMF conference, “We believe that CBDCs could actually be able to kill whatever little case that could be for private cryptocurrencies,”

Recently, the economic affairs secretary Ajay Seth had revealed that the Indian government has concluded its consultation paper on cryptocurrency. But before the government could even unveil the paper, the country’s central bank hinted that it is unlikely to change its negative stance on virtual digital assets (VDA).

However, the industry has made it clear that CBDC will not replace VDA in the local report. Instead, most of the players believe that the two will complement each other.

Vikram Subburaj, CEO of Giottus told the daily, “A blockchain-based payment system with sovereign backing is unlikely to be a challenger for cryptocurrencies in general.”

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Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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