Nandan Nilekani believes that treating cryptocurrency as if it were gold may boost the Indian economy.
Important Updates
- India's IT leader, Nandan Nilekani, has pushed the country's IT sector to adopt bitcoin as an asset class.
- The ambiguity surrounding India's cryptocurrency legislation has sparked worries about the financial industry's stability.
- Leading Indian banks allegedly clamped down on consumers who used their bank accounts to store Bitcoin in May.
Treat cryptocurrency as if it were gold
Nandan Nilekani, the co-founder of computer behemoth Infosys, has pushed local governments to use cryptocurrency as a form of investment. During an interview with Financial Times, Nandan shared his thoughts on bitcoin.
He thinks that the use of cryptocurrency in the nation may provide economic benefits, as explained. However, virtual currencies such as cryptocurrency should be categorized in the same bracket as precious metals since they are too volatile for transactional advantages and use a lot of energy.
Nandan Nilekani asserts: "You may have part of your assets in crypto just like you have some in gold or real estate. I believe crypto has a function as a stored value, but not in a transactional sense."
Nandan already explained why the Indian government should allow people to own and use firearms a few months ago. For example, in March, the CEO emphasized the far-reaching potential of cryptocurrencies.
He went on to say: "We should conceive at cryptocurrency as an asset class and enable individuals to own some. Crypto as a transaction medium will not be as quick as UPI, which aims for a billion transactions per day. However, there is a lot of money in crypto."
India's cryptocurrency situation
With nearly 2 billion inhabitants, India is the world's second-most populous nation. So far, residents' interest in cryptocurrency has been growing. However, the government's continual resistance is greatly decreasing the adoption rate. In 2018, the Reserve Bank of India outright prohibited any crypto-related operations. However, the RBI has lately said that 2018 circular is insufficient for banks to limit and limit crypto usage by banking clients.
Following the RBI explanation, interest in crypto and digital asset ownership has been reignited.
In conclusion
Though we are optimistic that bitcoin in India will improve for investors, it is currently unclear if cryptocurrency transactions are legal or unlawful in the nation.
Question of the day
Do you agree with Nandan Nilekani that cryptocurrency should be treated like gold rather than a payment method?
