- Zhao suggests crypto adoption could stabilize India’s faltering economy.
- Protectionism harms the economy, Zhao argues, as rupee weakens.
- Zhao sees national crypto reserves as India’s economic solution.
Changpeng Zhao, the founder and former CEO of Binance, has weighed in on the Indian rupee’s steep decline against the U.S. dollar. In a recent post on X (formerly Twitter), Zhao highlighted the root causes of the currency’s troubles, particularly the impact of protectionism.
The rupee has hit a new low against the dollar, where the trend is influenced by the U.S government imposing a tariff of 25% on Indian imports.
According to Zhao, protectionism often does more harm than good, especially when it affects the broader economy. As opposed to protecting the economic interests, these policies impose burdens on the people they are supposed to protect.
As Zhao pointed out, the answer to the problems of India has to do with innovation, in this case, with the sphere of blockchain technology and cryptocurrencies.
These remarks by Zhao are based on his decades of experience in the world crypto markets. He has been involved in close cooperation with such countries as Kazakhstan and Pakistan, where he was a member of national crypto councils.
An example of this, Kazakhstan, already proceeded with the plans to construct a Bitcoin reserve, which Zhao regards as a promising approach to countries that seek to stabilize their economies with the help of innovative digital solutions.
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Crypto as a Game Changer for India’s Economic Recovery
The recent challenges facing India’s economy are deeply tied to the ongoing trade tensions with the U.S. The 25% Indian tariff struggle has compounded the plight of the rupee, yet, according to the vision of Zhao about the future, the best opportunity for India to recover is to seize the opportunity of blockchain and cryptocurrency.
Zhao is also of the opinion that India, as is the case with other nations, stands to gain a lot by establishing a national crypto reserve. This would not only present an alternative financial system but also assist in protecting the country against the fluctuation of the conventional currency markets.
India could lead the way to a more stable and innovative future for its economy by implementing cryptocurrencies as a component of its financial strategy.
The insights provided by Zhao highlight the rise in the trend of global adoption of digital assets as a diversification tool of the economy. As more countries look to blockchain as a tool for economic resilience, India may find that innovation, rather than protectionism, offers the best path forward in stabilizing its economy.
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