The chairman of leading Indian company Infosys says that crypto should be regulated as an asset like a commodity. He believes that crypto investors will make a significant contribution to India’s economy.
Infosys chairman wants to regulate crypto as an asset
According to an interview with the Financial Times, Infosys Chairman Nandan Nilekani says that the Indian government should regulate crypto as an asset that can be bought or sold. He elaborated:
Just like some of your assets are in gold or real estate, you can keep some of your assets in crypto. I think there is a role for crypto as a stored value but certainly not in a transactional sense.
Established in 1981, Infosys is a NYSE-listed Indian multinational information technology and consulting company with approximately 25,000 employees. The company has a presence in more than 50 countries. Nilekani has long worked with Indian authorities to help formulate digital policies, including the Aadhaar Biometric Identification Program. He also chaired a central bank committee on digital payments in 2019.
Nilekani believes that cryptocurrencies are not suitable as a means of payment as they are too volatile and energy-intensive. In addition, he believes that India’s Unified Payments Interface (UPI) digital payment infrastructure is more effective.
The chairman explained that if cryptocurrency investors are allowed to tap into the $1.5 trillion cryptocurrency market, they will “put their wealth into India’s economy”.
The Indian government is still working on the country’s crypto policies. There is a cryptocurrency bill that was supposed to be introduced in the budget session of the Parliament, but it did not happen. The bill proposes to ban cryptocurrencies. However, there are reports that the government is re-evaluating the bill and setting up a panel of experts To come up with new recommendations.
Last week, India’s central bank, the Reserve Bank of India (RBI), clarified Its position on cryptocurrency. RBI informed banks that its April 2018 circular, which prohibited financial institutions from providing services to cryptocurrency businesses and traders, is no longer valid and should not be quoted or quoted. Shaktikanta Das also confirmed that the position of the bank has not changed and that there are still “major concerns” regarding cryptocurrencies.
Infosys has embraced blockchain technology, providing “a comprehensive suite of end-to-end blockchain services from advisory, implementation, change management to operations and application maintenance,” its website states.
I think, to be honest, today’s opportunities are better than ever. In the 40 years I’ve been in this industry, I’ve never seen so much change and acceleration.
The Infosys chairman is not alone in thinking that crypto should be regulated as an asset in India. Last month, former finance secretary Subhash Chandra Garg, who headed the committee drafted bill banning cryptocurrencies, said That the government should regulate them as crypto assets instead of banning them. He explained that when the bill was drafted, crypto was more widely used as a currency rather than an asset, but that has changed. Now, crypto is being used in India as much more than a currency as an asset and investment vehicle.
Do you think the Indian government should regulate crypto as a commodity? Let us know in the comments section below.
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