Cryptocurrencies have taken a tumble soon after the government made an announcement to introduce a Bill. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' is among 26 new bills on the agenda of the government for the winter session of parliament beginning November 29.
According to cointelegraph, a mass sell-off on WazirX on Wednesday morning at 3:30 AM UTC tanked the price of Bitcoin from nearly 4,600,000 Indian rupees ($61,820.73) to 3,917,659 rupees ($52,650.55), a drop of 14.8% within two hours. Similarly, other popular tokens, including Ether and Cardano, experienced double-digit price depreciation locally on the exchange.
In an exclusive interview with CNBC, former RBI governor Raghuram Rajan said that of the 6,000 crytocurrencies, only 1-2 or a handful may survive.
“If things have value only because they will be pricier down the line, that’s a bubble,” he told CNBC-TV18. “…A lot of cryptos have value only because there is a greater fool out there willing to buy.”
Rajan said, the Centre must allow the underlying blockchain technology to flourish. Blockchain ways of transacting were much cheaper, especially across borders, he said.
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