Indian Entrepreneur Nandan Nilekani Suggests Crypto to Government

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  • Indian entrepreneur Nandan Nilekani has called on the Indian government to accept cryptocurrencies as an asset class.
  • Nilekani believes cryptos are more of an asset rather than a payment method.
  • Nilekani is also against a prohibitive approach by the government, he believes crypto can improve India’s economy.

Nandan Nilekani, an Indian entrepreneur and co-founder at Infosys, has requested the Indian government to accept cryptocurrencies as an asset class similar to gold and real estate. The news comes at a time when officials around the globe are trying to figure out new ways to address crypto innovation.

Nilekani, the non-executive chairman of Infosys, Indian multinational information technology and consulting firm, believes cryptocurrencies are more of an asset class rather than a payment method. He points out the volatility in the crypto space as the main barrier hindering this class from being widely accepted and practiced as a means of payment.

He stated in an interview with the Financial Times:

You can hold some of your assets in cryptocurrencies, just as you have some of your assets in gold or real estate. I think cryptocurrencies have a role in storing value, but they certainly aren’t in the sense of transactions.

Nilekani further asserted that the Indian government should not impose prohibitive regulations on the crypto industry. Speaking to the Financial Times, he said that a restrictive approach will wipe out the possibility of gaining any profit from the $1.5 trillion digital markets, adding that a more open stance will allow “crypto guys to put their wealth into India’s economy.”

The Indian tech mogul has had a long history of cooperating with government lawmakers to develop policies on innovations and digital technologies. In 2016, Nilekani worked with a committee to examine and find out how Indian people can utilize digital payment solutions. And more recently, in 2019, he was appointed as the chairman of the Central Banking Commission on digital payments.

India Becoming a Promising Crypto Space

To India’s tremendous unbanked population, crypto assets are an attractive choice. Though, the Indian government has shown a red flag to crypto space numerous times, yet things are becoming more optimistic.

A few weeks ago, as covered by FullyCrypto, The Economic Times reported that the Indian government is forming a new committee to study the possibility of regulating cryptocurrencies as digital assets. According to the report, the committee will also be in charge of exploring blockchain technology and finding use cases of innovation for technological advancements.

Before this positive news, numerous Indian officials including the country’s finance minister had reiterated that the country will take a “calibrated” stance on the crypto market.