Part 7/10:
Recent scandals and market volatility highlight the fragility of decentralized cryptocurrencies, prompting governments worldwide to favor regulated digital currencies. Countries like India and China view CBDCs as a means to ban or strictly regulate cryptocurrencies, aiming to prevent financial instability.
The Argument for Regulation
Tax and control: Governments find controlling and taxing digital currencies easier when centralized through CBDCs.
Preventing crises: Some officials, such as India's central bank governor, argue that banning cryptocurrencies might be necessary to avoid future financial crises.