> 20. Historically, private currencies have resulted in instability and therefore have evolved into fiat currencies over centuries. The retrograde step back to

> 20. Historically, private currencies have resulted in instability and therefore have evolved into fiat currencies over centuries. The retrograde step back to private currencies cannot be taken simply because technology allows it (it always did, actually) without any consideration for the dislocation it causes to the legal, social and economic fabric of society. Every private currency will eventually replace the Rupee to some extent. Consequently, the role of the Rupee as a currency will be undermined. With one or more private currencies being allowed, there would be parallel currency system(s) in the country. Thus, increased acceptance of cryptocurrencies would result in effective ‘Dollarization’ of our economy. Dollarization, it is well understood, would undermine the ability of authorities to control money supply or interest rates, as monetary policy would not have any impact on the non-Rupee currencies or payment instruments. When that happens, India loses not just its currency, a defining feature of its sovereignty, but its policy control of the economy. With loss of traction for monetary policy, the ability to control inflation would be materially weakened. The paper misses the context in which Bitcoin emerged. The "Global Financial Crisis" woke up a lot of people to the reality of "fiat" (dixitque Nixon fiat pecunia et facta est pecunia) and its implications. During this time in Germany Merkel coined the words "Bankenrettung" ("rescue of banks") and "alternativlos" ("no alternative"/"the only way"). This indeed did cause - at least in the western wolrd and in some parts of the middle class - a dislocation [...] [of] the legal, social and economic fabric of society. Now, today, 15 years later the vast majority of the so called cryptocurrency-market does not even try to emancipate itself from the financial power that be, no, it has been effectively captured and tamed by "AE" and become one of their convenient tools they can use to "destabilize" EE's, playground for CBDC, another rigged enrichment game ... The people who became "lambo" realized pretty fast how convenient the system is once you are rich. So they mostly don't really challenge the establishment except in "style", too "risky", ya know.