This morning, the cryptocurrency market saw a major headline that caused Dogecoin’s price action to drop. The Indian Central Bank has come out with a strong rejection against adopting cryptocurrencies in the country. There was an announcement from the Indian Central Bank (RBI) that mentioned cryptocurrencies “a tool that wreaks havoc on our economy†
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The price of Dogecoin has temporarily risen
Dogecoin’s price action is not in a good place. In just five minutes, the comments hit its planned bull target for next week at $0.1357. As a result, Dogecoin (DOGE) plunged back to the opening level, taking it one step further from where it had been before.
The price of Dogecoin fell as the news came out. A trendline and an intermediate topline prevented the bulls from moving the price higher. So instead the price went back to where it started and looked like it was going to drop more. A possible target for the price drop is $0.1137 and $0.1100.
Investors may be slow to react, but buying the dip could push the price upward by $0.1197. This would open the door to $0.1242 intraday and possibly back on track at $0.1357.
The session in the US has only just begun, so economic recovery is time. Maybe even some good tax or regulatory news before traders move on – providing markets with support at both $0.1197 and psychological levels like barbette above, where buyers seem confident again.
DOGE Started Day With Drop As India Plans Not To Regulate Cryptos | Source: DOGE/USD chart of Tradingview.com
India to launch CBDC this year
The Indian government has released its stances on cryptocurrencies and digital currencies. They are not going to regulate cryptocurrencies by the central bank. Instead, India’s central bank will launch the central bank digital currency (CBDC) this year.
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On Tuesday, the Indian Ministry of Finance answered some questions in Rajya Sabha about “RBI Cryptocurrency.”
The finance minister to explain was asked by Rajya Sabha member Sanjay Singh, “whether it is a fact that the government plans to introduce a cryptocurrency regulated by The Reserve Bank of India (RBI).
“No sir,” replied Pankaj Chaudhary, the foreign minister of the Ministry of Finance.
Minister Chaudhary explained the difference between the RBI cryptocurrency and traditional paper currency:
RBI does not issue cryptocurrency. Traditional paper money is legal tender and is issued by RBI in terms of the RBI Act, 1994. A digital version of traditional paper money is called central bank digital currency (CBDC).
Indian Finance Minister Sitharaman said during her budget speech on February 1:
The introduction of a central bank digital currency will give a major boost to the digital economy. Digital currencies will also lead to a more efficient and cheaper currency management system.
Indian Prime Minister Narendra Modi commented: on the upcoming launch of the digital rupee:
The digital rupee will revolutionize the fintech sector by creating new opportunities and reducing the burden in cash processing, printing and logistics management.
Featured image from Pixabay, chart from Tradingview.com