India Can Use Yes Bank Debacle to Chase China in Crypto
There’s an opportunity to stabilize the financial system and prevent a rival power from widening its lead.
More confidence in cryptocurrency?
Photo: Bloomberg
Confidence in the Indian financial system has been breaking down for some time. Instead of trying to restore trust, it may be time to require less of it — with the help of an official rupee cryptocurrency.
The last straw was the collapse of corporate lender Yes Bank Ltd., which failed in slow motion in full view of authorities. Depositors have been assured that their $20 billion-plus in stuck funds will be released after a rescue by the government-controlled State Bank of India. While that may help prevent widespread panic, even temporarily stopping people from accessing their funds would mean that from now on, not all savings and current accounts will be treated by individuals and businesses as a perfect substitute for cash.