Crypto advocate urges Indian government to improve regulation

0
16

TL;DR Breakdown

  • Crypto advocate calls for improved regulation in India
  • Nilekani indifferent about CBDC in India

Nandan Nilekani, a crypto advocate in India and co-founder of major Indian tech company Infosys, has called on the government to improve crypto regulation in the country. This is as regulatory uncertainties emanate from the Reserve Bank of India, the Finance Ministry, and other regulators.

Nilekani urged the government to help Indian MSMEs access capital using Bitcoin as the government reportedly mulls a ban on private digital assets. The crypto advocate who is also an entrepreneur during a Clubhouse session with angel investor Balaji Srinivasan discussed the state of crypto in India where he made the call.

During the session, the crypto advocate preached freedom to use cryptos like BTC in the South Asian country. He argued that Indians should be at liberty to own crypto as an asset class. The billionaire entrepreneur reiterated crypto’s use as a store of value, highlighting its promising potential.

He called regulators to help the country’s micro, small and medium enterprises access capital through crypto. Nilekani’s remarks come in the wake of increased uncertainties regarding the legal status of cryptocurrency in the country.

India crypto regulatory crisis

Tension has risen about the future of crypto in India as the Reserve Bank of India continues to raise concern over crypto use in the country. The apex bank said a ban on cryptocurrencies was imminent in the country and that their mere ownership would be made a criminal offense.

Back in 2018, the bank placed a ban on Bitcoin telling financial institutions in the country to not provide any support for cryptocurrency in the country. The ban was overturned by the Supreme Court later in 2020. The Finance Ministry in the country, however, contradicted the Reserve Bank stating that crypto would be given a chance in the country as there would be a window test to put Bitcoin in place.

Crypto advocate Nilekani says no need for CBDC

Despite the conflicting views of the RBI and the Finance Ministry, Nilekani (who is an advisor to the RBI) says Indians have fully embraced blockchain technology. At the same time, he took a neutral view on RBI’s plan to float a CBDC.

“I am not sure we need a private stablecoin or if a digital rupee will be good enough, he said. Nilekani, however, said a digital rupee hinged on the nation-wide payment UPI could be welcomed if it facilitates international transactions for users.