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The chairman of Infosys, a major Indian company, said that encryption should be regulated as an asset, just like a commodity. He believes that cryptocurrency investors will make a significant contribution to the Indian economy.
Nandan Nilekani, Chairman of Infosys, stated that the Indian government should regulate cryptocurrency as an asset that can be bought and sold, just like commodities, according to the Financial Times. He explained:
Just like you own some gold or real estate assets, you can also own some crypto assets. I think encryption can be used as a store of value, but it is certainly not in the sense of transaction.
Founded in 1981, Infosys is an Indian multinational information technology and consulting company listed on the New York Stock Exchange with approximately 25,000 employees. The company has operations in more than 50 countries. Nilekani has long been working with Indian authorities to help develop digital policies, including the Aadhaar biometrics program. He also served as Chairman of the Central Bank’s Digital Payments Committee in 2019.
Nilekani believes that cryptocurrencies are not suitable as payment methods because they are too unstable and energy-intensive. In addition, he believes that India’s Unified Payment Interface (UPI) digital payment infrastructure is more effective.
The chairman explained that if cryptocurrency investors are allowed to enter the US$1.5 trillion cryptocurrency market, they will “invest their wealth into the Indian economy”.
The Indian government is still making the country’s cryptocurrency policy. A cryptocurrency bill should have been proposed at the parliamentary budget meeting, but this is not the case. The bill proposes to ban cryptocurrencies. However, there are reports that the government is reassessing the bill and is setting up a panel of experts to make new recommendations.
Last week, the Reserve Bank of India (RBI), the central bank of India, clarified its position on cryptocurrencies. The Reserve Bank of India informed the bank that its April 2018 notice prohibiting financial institutions from providing services to cryptocurrency companies and traders is no longer valid and should not be cited or cited. Shaktikanta Das also confirmed that the bank’s position has not changed and that it still has “significant concerns” about cryptocurrencies.
Infosys has adopted blockchain technology to provide “a comprehensive set of end-to-end blockchain services, from consulting, implementation, change management to operations and application maintenance,” its website describes.
Frankly speaking, I think today’s opportunity is better than ever. In the 40 years I have been in this industry, I have never seen so many changes and accelerations.
The chairman of Infosys is not the only one who believes that encryption should be regulated as an asset in India. Last month, Subhash Chandra Garg, the former Treasury Secretary of the committee responsible for drafting a bill to ban cryptocurrencies, stated that the government should regulate them as crypto assets, rather than ban them. He explained that when the bill was drafted, cryptocurrencies were used more widely as currencies rather than assets, but this situation has changed. Now, cryptocurrency is used as an asset and investment tool in India, not just a currency.
Do you think that the Indian government should regulate cryptocurrency as a commodity? Let us know in the comments section below.
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