Cryptocurrency prices crashed in India early Wednesday after a government said it is set to ban all the private cryptocurrencies in the upcoming Winter session of the Parliament. While the prices recovered later, Avinash Shekhar of ZebPay suggested that investors should not engage in short selling or panic selling.
“Our belief is the government will move towards regulation rather than a ban ... So from our side, the message to investors is: Do not short sell. And do not sell your crypto below the market price. The government will come out some with something positive,” Shekhar told CNBC-TV18.
Cryptocurrencies are at the centre stage after the government said it is set to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the Winter Session of Parliament for consideration and passing. The bill seeks to prohibit all private cryptocurrencies in India. The bill will also seek to create a framework for the official digital currency to be issued by the Reserve Bank of India.
Talking about the government's announcement to bring about a central bank digital currency (CBDC), Shekhar said CBDCs will help grow the cryptocurrency ecosystem.
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