Changepeng Zhao, one of the most prominent voices in the crypto industry and the Co-Founder of Binance, who is also known as CZ, shared a notable comment on the Indian rupee, which hit a record low of 88.42 against the US dollar today.
Responding to a post by The Spectator Index that highlighted INR’s depreciation, CZ warned against protectionist policies, arguing that such measures ultimately harm the people and weaken the economy.
“The best way to improve the economy is to adopt innovation,” CZ said, “Protectionism is always at the expense of the people, ie, the economy.”
The remarks from CZ also come amid India delaying crypto regulations over systematic concerns. A recent report from Reuters cited that the country is planning to keep partial oversight on cryptocurrencies, while fearing that fully fledged regulations would create major risks and legitimize the industry.
India’s Position in Global Crypto Space
Currently, India doesn’t have a full law for digital assets right now. The government has already taken some steps, though. There is a 30% tax on profits on cryptocurrencies and a 1% TDS on every transaction, which makes crypto trading stressful for users. Moreover, before starting business in India, foreign crypto exchanges must register with Indian regulators.
In a recent speech, G. Padmanabhan, a former Executive Director of the Reserve Bank of India (RBI), urged the government to take a clear stand on stablecoins. He warned that leaving the issue in limbo could lead to the same kind of uncertainty that cryptocurrencies have caused.
CZ’s post has caused wider speculation on the ongoing debate of whether India, the third-largest economy, should continue with its protectionism policies in trade or embrace innovations to overcome economical barriers. Currently, India has one of the strictest cryptocurrency policies in the world.
Also Read: Hong Kong Arrest 2 Over Alleged Electricity Theft for Bitcoin Mining
