Cryptocurrency News

Lawmakers should treat crypto like gold or real estate: Indian tech giant

Indian technology mogul, Nandan Nilekani has urged local lawmakers to allow citizens to bet on crypto assets.

The co-founder and chairman of Infosys, an Indian multinational information technology firm, has urged regulators to manage the adoption of digital assets and accommodate the technology.

talking to financial TimesNilekani warned that prohibitive regulations could result in significant missed opportunities for India, adding that a more permissive approach would allow the country to tap into the $1.7 trillion digital asset market and “allow crypto people to pump their money into India’s economy”. will allow.

Nilekani, however, is not bullish on an autocratic crypto market for India, saying that cryptocurrencies are too volatile and energy-intensive to use as a means of payment. Instead, he believes that the Reserve Bank of India’s Unified Payments Interface infrastructure provides better infrastructure for real-time payments.

Instead, the tech mogul advised allowing Indians to access crypto assets for speculation and as a store of value, stating:

“Just like some of your assets are in gold or real estate, you can hold 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. “

Nandan Nilekani has worked long hours with Indian authorities to help formulate policies on digital technologies, including the Aadhaar biometric identification program launched in 2009. In December 2016, he joined a committee to investigate how people in India can make the most of digital payments, and in 2019, he chaired a central bank committee on digital payments.

With India’s vast tech sector and unbanked population, the country may be a global hub for crypto asset adoption, but the regulatory situation is unclear, with conflicting signals coming from policymakers and the central bank.

On May 19, Cointelegraph reported that the creation of a new Regulatory panel dedicated to digital assets Might pave the way for more clarity on the situation.

A Cryptocurrency and Regulation of Official Digital Currency Bill 2021 was to be addressed in parliament in March, but was postponed for reasons not made public.

RBI banned all banks from allowing customers to trade in crypto assets in 2018, however, this was overturned by the Supreme Court in February 2020, raising new hopes.

However, despite the huge momentum on crypto exchanges, most of the industry still operates in a gray area and Continued retail demand in recent months.