> Thus, increased acceptance of cryptocurrencies would result in effective ‘Dollarization’ of our economy6. Dollarization, it is well understood, would undermine the ability of authorities to control money supply or interest rates, as monetary policy would not have any impact on the non-Rupee currencies or payment instruments. When that happens, India loses not just its currency, a defining feature of its sovereignty, but its policy control of the economy. With loss of traction for monetary policy, the ability to control inflation would be materially weakened.

If I transacted in, say, cans of beans, would that also undermine sovereignty and control of the economy?

Sounds to me that the mentioned sovereignty and control are very fragile. Sovereignty should come through consent of citizens and voluntary participation, not tyranny.

And since the Rupee devalued 2.4 times against the USD in the past 27 years, I argue that such inflation control was abused, punishing savers and encouraging debt, essentially translating to financial repression.