TL;DR Breakdown
• Infosys wants the cryptocurrency in India to be an “asset class.”
• Authorities in India could lift sanctions with the crypto storage scheme.
Infosys co-founder Nandan Nilekani thinks that the cryptocurrency market in India should use tokens as an asset class. This technology service company based in Bangalore, India, is once again showing its support for virtual currencies.
Nilekani believes that just as Indians have assets in gold or real estate, they can adopt cryptocurrencies. The president of Infosys thinks that virtual currencies have a storage value beyond the transactional one.
All these comments come out as India currently experiences a cryptocurrency ban which has been mulled over since its inception but increased in 2021. India is one country that has tried the most to regularize the crypto market since it gained fame. Government authorities have branded Bitcoin tokens as a scheme that lends itself to money laundering.
Infosys supports cryptocurrency
In the interview with Nilekani about the cryptocurrency market, he showed all his support. This information technology veteran is confident that decentralized currencies play a great role in the economy. The expert suggests that the incursion with transactions in Bitcoin may not work, with its use as storage.
Nilekani had brilliant participation in the Aadhaar identity system made in India. He concluded that companies and individuals taking advantage of the cryptocurrency market will improve their popularity. Crypto enthusiasts will give priority to the market and will use their wealth as a source of storage.
But Nilekani has supported the “value reserve” scheme about cryptocurrency. Perhaps Nilekani’s views are not wrong because the crypto market has shown that it is excellent as a depository.
Reasons for taking tokens as an “asset class” in India
After ending his engagement at ClubHouse last March, Nilekani thinks that Indians should hold cryptocurrencies as an “asset class.” This meeting that Nilekani had was with investors Karthik Reddy from Blume Ventures and Ángles Balaji Srinivasan.
Although virtual currencies do not work as a means of transaction, they work as deposits due to their volatility and high cost per movement. These decentralized currencies’ transactions are not at the UPI level, so their market is not seen as convenient. The thousands of daily transactions in India cause the market to collapse, which can be related to the poor market.
India should change its way of looking at cryptocurrencies. Perhaps with this new scenario, the authorities in the country will lift the regulations that have affected Bitcoin so much.
Cryptocurrencies would be an asset class more like real estate. Nilekani has been working for a long time to promote this mode of working, and the Indian authorities have supported him. The Infosys president also formed a committee in 2019 to talk about digital payments and the avoidance of fines on crypto.
