Indian tech leader Nandan Nilekani has urged the country to accept cryptocurrencies as an asset class as other countries are making similar moves. The crypto regulatory environment in India is filled with uncertainties at the moment.
Nilekani urges India to embrace cryptocurrencies
India is one of the leading cryptocurrency markets in the world. However, the uncertainty regarding cryptocurrency regulations has left several investors confused as to how to approach the new asset class.
The chairman of Infosys, Indian-based information technology and consulting firm, Nandan Nilekani, has urged the Indian government to consider cryptocurrencies as asset classes. He stated that it is necessary considering other countries are making similar moves.
According to Nilekani, he doesn’t consider cryptocurrencies suitable as a means of payment due to their price volatility and high energy usage. However, he believes the government should encourage the people to buy and sell cryptocurrencies like commodities. He told the Financial Times that “You can hold some of your assets in cryptocurrencies, just as you have some of your assets in gold or real estate. I think cryptocurrencies have a role in storing value, but they certainly aren’t in the sense of transactions.”
The tech leader argued that by making the cryptocurrency market available to Indians, it would allow the assets to create wealth in the country.
India’s regulatory uncertainty remains a challenge
As one of the most populous countries in the world, India is a key market for cryptocurrencies. However, the regulatory uncertainty makes it challenging to achieve massive adoption. The official position regarding cryptocurrencies in India remains unclear.
Although cryptocurrency trading is not banned, the Reserve Bank of India has urged banks and other financial institutions to cut ties with crypto traders and businesses. The RBI also said on numerous occasions that it has its concerns regarding cryptocurrencies.
However, regulation might be close as the government is set to form a new panel to study cryptocurrency regulations. The panel could suggest the various ways the government could regulate the Indian crypto market.