The chairman of the large Indian company Infosys says that crypto should be regulated as an asset like a commodity. He believes crypto investors will make a significant contribution to the Indian economy.
Infosys chairman wants crypto to be regulated as an asset
Infosys chairman Nandan Nilekani says the Indian government should regulate crypto as an asset that can be bought or sold like a commodity, according to an interview with the Financial Times. He explained:
Just as you have some of your wealth in gold or real estate, so can you have some of your wealth in crypto. I think crypto plays a role as stored value, but certainly not in a transactional sense.
Founded in 1981, Infosys is a NYSE-listed Indian multinational information technology and consulting company with approximately 25,000 employees. The company is represented in over 50 countries. Nilekani has long worked with Indian authorities to help develop digital guidelines, including the Aadhaar biometric identity program. He also chaired a central bank committee on digital payments in 2019.
Nilekani considers cryptocurrencies to be unsuitable as a means of payment because they are too volatile and energy-intensive. In addition, he believes India’s Unified Payments Interface (UPI) digital payments infrastructure is more effective.
The chairman stated that if they were allowed to enter the $ 1.5 trillion cryptocurrency market, cryptocurrency investors would “put their wealth into the Indian economy”.
The Indian government is still working on the country’s crypto policy. There is a cryptocurrency bill that was supposed to be presented at Parliament’s budget session, but it wasn’t. This bill proposes banning 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, Reserve Bank of India (RBI) clarified its position on cryptocurrency. RBI informed banks that its April 2018 circular banning financial institutions from offering services to cryptocurrency companies and traders is no longer valid and should no longer be quoted or cited. Shaktikanta Das also confirmed that the bank’s position has not changed and that there are still “major concerns” about cryptocurrencies.
Infosys has taken over blockchain technology and offers “a comprehensive suite of end-to-end blockchain services from consulting, implementation and change management to operationalization and application maintenance,” describes its website.
I think, to be honest, the odds are better today than ever. In the 40 years that I’ve been in this industry, I’ve never seen so much change and acceleration.
The Infosys chairman isn’t the only one who thinks that crypto should be regulated as an asset in India. Last month, former Treasury Secretary Subhash Chandra Garg, who chaired the committee drafting the bill to ban cryptocurrencies, said the government should regulate them as crypto assets rather than banning them. He stated that when the bill was drafted, crypto was used as a currency rather than an asset, but that has changed. Now, crypto is used more than a currency in India 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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