CoinDCX co-founder urges balance between CBDCs and crypto

Sumit Gupta, co-founder and CEO of CoinDCX, recently emphasised that central bank digital currencies (CBDCs) and cryptocurrencies like Bitcoin (CRYPTO:BTC) should coexist rather than compete. 

In an October 23 post on X, Gupta explained that both digital assets have distinct purposes and should not be seen as rivals. 

Gupta clarified that CBDCs, which are issued and managed by central banks, allow for the centralised control of monetary policies such as inflation, liquidity, and interest rates. 

“CBDCs are issued centrally by the nation’s central bank, which ensures complete control over their issuance, supply, and usage,” he stated. 

Gupta believes this centralisation provides governments with the ability to implement effective policies, while cryptocurrencies offer decentralised alternatives. 

However, not everyone shares Gupta’s optimism. 

Jack Booth, co-founder of TON Society, expressed concerns that CBDCs pose risks to individual financial autonomy. 

In a recent interview with Cointelegraph, Booth said, “CBDCs pose the greatest danger to self-sovereignty,” citing growing mistrust in governments, especially in Western countries. 

He argued that granting unelected officials control over people’s funds could exacerbate existing issues that led to the creation of Bitcoin. 

India's regulatory landscape continues to spark debate, with discussions focusing on balancing innovation and security. 

Although the country has considered banning private cryptocurrencies, Gupta highlighted the potential negative impact on India’s thriving Web3 sector. 

He noted that a ban could stifle entrepreneurship and hinder blockchain advancements, given the over 450 Web3 startups in the nation. 

Gupta urged the Indian government to ensure fair regulations and address taxation issues. 

“Various reports have established that taxation drove a lot of users to offshore platforms,” he said. 

He also stressed the importance of establishing compliance frameworks to prevent money laundering, in line with the Prevention of Money Laundering Act (PMLA) initiatives.