Cryptocurrency update: Cardano jumps 11%; XRP gains 7.4%

Nine of the top 10 cryptocurrencies were trading in green on August 28. Cardano had the highest gain of 11% as compared to its peers and was trading at $2.85. XRP gained 7.45%, and was trading at $1.16. On the other hand, USD Coin was the only crypto that declined by 0.03% to $1.00. The biggest and the oldest cryptocurrency Bitcoin gained by 3.74% to $48,953.77 levels in the last 24 hours. While the second largest virtual token, Ethereum also increased by 4.26% to $3,243.66.

Cryptocurrency Prices

*All prices as of 28 August 2021, at 11:55 AM, Table Source: Coinmarketcap.com. Conversion rate for the USD to INR used was $1=Rs 73.50

Raghuram Rajan on cryptocurrencies

While speaking at the Reuters Global Markets Forum, former RBI Governor Raghuram Rajan said cryptocurrencies have fluctuating values, but have a potential future. They might find a way to become an effective means of payment, he added.

The former RBI governor was more positive on well-regulated stable coins. He also called for an appropriate regulation for stable coins.

He also added that cross border payments is one area that can be explored, because of the huge transaction costs involved in making such transactions. For cryptocurrency prices to keep rising these digital assets needs to find a proper use case, he said.

However, Reuters reported that the Rajan was not clear on the fundamentals that were driving the valuations of cryptocurrencies. This is because cryptos are being valued as assets, and not as a means of payments, he added.

In India many crypto exchanges are urging the government to define cryptocurrencies not as a currency but as digital assets. This would help the government to address all the legitimate concerns with regards to financial risks associated with cryptos, according to industry experts.