Cryptos and CBDC are not the same thing:

Objective: Cryptocurrency will be discouraged via taxation and capital gain provisions.

Issue: Will this slow the growing use of cryptos in India?

Summary

 The governor of Reserve Bank of India highlighted 2 things :

1) Private cryptocurrencies are a big threat to our financial and macroeconomic stability
2) These cryptocurrencies have no underlying asset.

 Cryptos cannot be considered as currency as it is worse than the ponzi scheme and many
have argued against legitimizing it. Cryptos also threaten The RBI’s place in economy’s
financial system because cryptos are based on blockchain technology which central banks
cannot regulate and it also enables enterprising the private entities to float cryptos which
functions as assets and money.
 The total valuation of cryptos was 2 trillion dollar which is more than the value of gold held
globally.

Difference :

A currency is a token used in market transactions.so. it is valuable but the paper currency is
useless until and unless the government declares it to be a fiat currency. So, it can be said
that paper currency derives its value from state backing. On the other hand, cryptos are a
string of numbers in a computer programme and are even more worthless.

Tulips cannot be used as tokens while cryptos can be used via internet. Supply of tulips can
expand as their price goes up while the number of bitcoin is limited. Cryptos also relate to
the problem of double spacing. The problem can be solved by devising protocols such as
“proof of work” and “proof of stake”.

Conclusion:

CBDC cannot be a substitute for cryptos that will soon begin to be used as money. This will
impact the functioning of central banks and commercial banks. Ban on cryptos require global
coordination.