Legislators should treat cryptocurrencies like gold or real estate. says an Indian tech mogul

The Indian tech mogul Nandan Nilekani has urged local lawmakers to allow citizens to speculate in crypto assets.

The co-founder and president of Infosys, an Indian multinational information technology company, has urged regulators to use digital assets and make room for technology.

In an interview with the Financial Times, Nilekani warned against this The prohibitive regulations could miss India significant opportunities as a more permissive approach would allow the country to tap into the $ 1.7 trillion digital asset market and “allow crypto traders to get their money into the Indian economy.”.

Legislators should treat cryptocurrencies like gold or real estate.  says an Indian tech mogul
Legislators should treat cryptocurrencies like gold or real estate. says an Indian tech mogul

However, Nilekani is not an advocate of an unrestricted cryptocurrency market for India as he claims so Cryptocurrencies are too volatile and use too much energy to be used as a means of payment. Instead, believe that Reserve Bank of India’s Unified Payment Interface infrastructure provides a superior real-time payment infrastructure.

Instead, Tech mogul advises giving Indians access to crypto assets for speculation and as a store of value, says:

â ???? Just as you have some of your wealth in gold or real estate, you can have some of your wealth in cryptocurrencies. I think cryptocurrencies play a role as stored value, but certainly not in a transactional sense.

Nandan Nilekani has a long history of working with the Indian authorities to help formulate guidelines for digital technologies, including the Aadhaar biometric identity program launched in 2009. In December 2016, he joined a committee to investigate how people in India could make more use of digital payments., and in 2019 he chaired a central bank committee on digital payments.

With India’s huge tech sector and no bank account, the country could be a global hub for crypto-asset adoption, but the regulatory situation remains unclear: with mixed signals from policymakers and the central bank.

On May 19, Cointelegraph reported that the formulation of a new supervisory body for digital assets could pave the way to clarify the situation.

March a bill on cryptocurrencies and regulating the official digital currency from 2021 should be discussed in parliament, but it has been postponed for reasons that have not been disclosed.

In 2018, RBI banned all banks from allowing their customers to trade crypto assets, but this was overturned by the Supreme Court in February 2020which gave rise to new hopes.

Much of the industry, however, continues to operate in a gray area despite massive momentum on the crypto exchanges and sustained retail demand in recent months.

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