Indian Central Bank Announcements influences Dogecoin Trading
The crypto market got an important information that caused Dogecoin’s price to trend down south. The RBI, which is the Central Bank of India does not favor cryptocurrency adoption in the country. The RBI described cryptocurrencies as “a tool that wreck the government’s ability to control currency systems, monetary authorities, and the economy”.
Following the statement, the price of Dogecoin declined down south. A trend line and an intermediary top-line stopped the bulls from taking the price higher. So instead, the price went back to where it started and looked like it would fall more. A possible target for the price going down is $0.1137 and $0.1100.
How should investors think about Dogecoin price in future?
Investors should think beyond these very short-term price fall. That would mean a pickup in buying interest which could lead to a punch through $0.1197 to the upside. This would open the door towards $0.1242 intraday and possibly again on track for $0.1357.
In this same month, the world’s biggest theater AMC accepted Dogecoin to book tickets. At that time, Dogecoin price had increased. Investors should focus on long-term trading rate of Dogecoin.
India against crypto currency, but supports CBDC
The Indian government has announced its stance on cryptocurrencies and digital currencies. They will not regulate cryptocurrencies by central banks. Instead, the Central Bank of India will launch the Central Bank Digital Currency (CBDC) this year.
Indian Minister’s views about Digital currency
Minister Chaudhary who is the Union Minister of State for Finance, Government of India opined that the Government of India does not have an idea to come up with its own cryptocurrency and therefore cryptocurrencies are not currently regulated in India.
“RBI does not issue cryptocurrency. Traditional paper currency is a legal tender and is issued by RBI in terms of provisions of RBI Act, 1994. A digital version of traditional paper currency is called central bank digital currency (CBDC).”
He added that the introduction of CBDCs could provide significant benefits, including reduced dependence on cash and increased seigniorage due to reduced transaction costs.
However, Indian Finance Minister Nirmala Sitharaman previously expressed, “The introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system.”
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