Oppressive policies on crypto market may accelerate the progress of CBDC

India’s parliament proposed “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.” Despite the policy not yet passed, private banks in India, including HSBC, Citibank, etc, require users to visit their bank in person and clarify their crypto-activities, otherwise, their bank accounts could be suspended.

Apart from India, Bank of England (BoE) has published a discussion paper on central bank digital currency (CBDC), to illustrate how CBDC could be used in the payment system. However, Andrew Bailey, Governor of the Bank of England, and Jon Cunliffe, Deputy Governor of the Bank of England for Financial Stability, have expressed their concern on Bitcoin and stablecoin respectively last year, which we found they were not supportive of cryptocurrency, in addition to the rule to ban the sale of crypto-derivatives to retail investors, we can induce that the regulations launched by both India and England were based on their fear of cryptocurrency, which they believe that cryptocurrency may be a threat towards fiat money, as well as accelerating the progress of CBDC.

On the other hand, though the United States is actively working on CBDC, it seems they are positive on cryptocurrency. For instance, the U.S. Office of the Comptroller of the Currency (OCC) approved regulated banks to participate in independent node verification networks (INVN) and to use stablecoin.

TideBit is a leading crypto asset exchange supporting fiat currency.