WazirX: Why are Cryptocurrency rates dropping? Bitcoin, Ethereum see drop in rates

The cryptocurrency market is currently in the red, according to data from crypto exchange WazirX, with all major coins such as Bitcoin, Ethereum, Solana, and Binance seeing price drops. While Ethereum fell 0.86 % to $4,167, Solana fell 1.24 % to $4,167. However, the so-called "memecoins" – Doge and SHIB – gained in value, but not significantly; the crypto exchange estimated their increases to be 0.30 % and 1.64 %, respectively.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” said the bulletin issued by the Lok Sabha. Crypto prices crashed by 15% and more, hours after the government made the announcement. 

Cryptocurrency rates dropping on Wazirx; CEO Nishal Shetty makes a statement

Cryptocurrency trading platform WazirXIndia CEO Nishal Shetty, who earlier interacted with Republic Media Network, also took to Twitter to address the new incoming legislation. In an exclusive interview with Republic Media Network, Shetty speculated that those cryptocurrencies that are categorised as assets and utilities might be immune to the ban. It is worth mentioning that the said bill is listed 'to create a facilitative framework for the creation of the official digital currency', which will be issued by the Reserve Bank of India (RBI) itself. However, Shetty also seemed to be against the idea of a total ban as he said, "To create a national digital currency, you don't have to worry about banning an asset or utility. You can definitely ban any crypto that wants to be a currency. That has been done in a few other countries, but it does not mean a total ban on the entire technology or the entire blockchain ecosystem."

"The whole Central Bank digital currency is a big win in general because that allows RBI to eventually come up with India's own digital token. But other crypto assets are not mutually exclusive...Bitcoin and everything else don't fall under cryptocurrencies, they fall under assets and utilities. So, these are very mutually exclusive things". 

Netizens' react to falling prices of Cryptocurrency

(IMAGE: SHUTTERSTOCK / PIXABAY)