India Should Not Ban Crypto as It’s an Asset Class, Said Tech Billionaire Nandan Nilekani

The Indian people need and should have access to cryptocurrency assets, said the co-founder of Infosys – Nandan Nilekani. The billionaire, who is also an advisor to government agencies and the country’s central bank, recently spoke against the country’s intentions to impose a crypto ban.

Crypto is an Asset Class

The world’s second-most populated country, India, has dabbled with the idea of banning cryptocurrency activities for years. Even after the country’s Supreme Court lifted a decision made by the Reserve Bank of India last year, the nation has openly discussed implementing another full-scale halt.

Earlier this month, India’s Finance Minister, Nirmala Sitharaman, provided some positive news for crypto investors, saying that the government is yet to decide which digital assets will be used and regulated, leaving a “window for experiments” for the industry.

The 65-year-old Indian entrepreneur and billionaire Nandan Nilekani also weighed in on the matter. He believes that the local population should be able to have access to interact with cryptocurrencies as they please:

“We should think of crypto as an asset class and allow people to have some crypto. Crypto as a transaction medium will not work as fast as UPI, which is targeting a billion transactions a day. But crypto has enormous capital.”

He added that Indians had shown an open-minded approach towards revolutionary technology, and there is “no doubt” that they have embraced blockchain.

Careful Consideration Required for India’s CBDC

While the country is looking into banning bitcoin and other crypto assets, India has been significantly more receptive regarding the idea of developing and releasing its own central bank digital currency (CBDC).

Nilekani considers such a move as potentially beneficial, but the RBI and the government have to make sure that the project is indeed what the population needs.

“Indian regulators are also considering a Central Bank Digital Currency or CBDC. I am not sure we need a private stablecoin or if a digital rupee will be good enough. We need to look at how it will help Indians, how MSMEs can access capital using bitcoins. No amount of tech is going to sway anyone’s view.”

Previously, the RBI governor Shaktikanta Das asserted that the digital rupee was “receiving full attention” from the organization, although no launch date is set.

Featured Image Courtesy of EconomicTimesIndia