This morning, the cryptocurrency market saw a significant headline that caused Dogecoin’s price action to drop. Indian Central Bank reaffirmed its opposition to cryptocurrency adoption. There was an announcement from India’s Central Bank (RBI) calling cryptocurrencies “This tool will cause havoc in our economy.”
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Temporarily the Dogecoin price has increased
Dogecoin’s price action is not in a sweet spot. Within five minutes, the bull target of $0.1357 for next week was shattered by comments. Dogecoin, DOGE (or Dogecoin) fell to its initial level, and it took another step back from the place where it was before.
Dogecoin’s price fell after the announcement. Bulls were unable to take the price up because there was a trendline and an intermediary high-line. The price plummeted more and returned to the level it was at. The price could fall to $0.1137 or $0.1100.
The investors might be slow to respond, but buying the dip can increase its price by $0.1197. It would allow for $0.1242 intraday, and perhaps even $0.1357 again.
So, economic recovery can be achieved. The US session just began. Maybe even some good news on taxes or regulations before traders move onto other things – providing markets with support at both $0.1197 and psychological levels like barbette above them where buyers seem confident again.
India Launches CBDC in India This Year
Indian officials have made public their positions regarding cryptocurrencies and digital currencies. The central bank will not regulate cryptocurrency. Instead, India’s central bank will be launching central bank digital currency (CBDC) this year.
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On Tuesday, the Indian ministry of finance answered some questions in Rajya Sabha regarding “RBI Cryptocurrency.”
The Finance Minister to state was asked by Rajya Sabha member Sanjay Singh, “whether it is a fact that the government plans on introducing a cryptocurrency regulated by The Reserve Bank of India (RBI).
“No sir,” replied Pankaj Chaudhary, the minister of state in the finance ministry.
Minister Chaudhary explained how the RBI cryptocurrency differs from traditional paper money.
The RBI doesn’t issue cryptocurrency. RBI issues traditional paper currency as a legal tender under the provisions of the RBI Act of 1994. Central bank digital currencies (CBDC) are digital versions of traditional paper currency.
Sitharaman, Indian Finance Minister During her February 1st budget speech
A central bank’s digital currency will provide a significant boost to the digital economy. The introduction of digital currency will lead to an easier and less expensive currency management system.
Indian Prime Minister Narendra Modi commented On the imminent digital rupee launch
By creating new opportunities, the digital rupee will transform the fintech industry and ease the load on cash handling, logistics, printing and management.
Featured Image from Pixabay. Chart by Tradingview.com