Aadhaar architect Nandan Nikelani has after once again known as for encouraging the use of cryptocurrencies as an asset class, to be purchased and sold like a commodity amid reports of India relooking at regulating the market place. “Just like you have some of your assets in gold or real estate, you can have some of your assets in crypto…I think there’s a role for crypto as a stored value but certainly not in a transactional sense,” Nilekani told the Financial Times in an interview. He added that permitting men and women and companies to tap the $1.5 trillion market place would enable “the crypto guys to put their wealth into India’s economy”.
During a Clubhouse session as nicely in March this year with Silicon Valley angel investor Balaji Srinivasan and Blume Ventures’ Managing Partner Karthik Reddy, Nandan Nilekani had argued for permitting folks to use crypto. “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. However, crypto has enormous capital,” Nilekani had stated. He added that India requires to look at how it will aid Indians, how MSMEs can access capital making use of bitcoins. “No amount of tech is going to sway anyone’s view.”
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Nilekani had earlier backed startups such as Tracxn, RailYatri, ShopX, Power2SME, Ninjacart, Fortigo, and so on., and set up a venture capital fund known as Fundamentum in 2017 along with Helion Ventures co-founder Sanjeev Aggarwal. His reiteration of crypto usage has come amid the expanding adoption of virtual currencies especially Bitcoin amongst corporates and institutions like Tesla, JPMorgan, Visa, MicroStrategy, PayPal, Goldman Sachs, and so on.
Importantly, amongst the watershed developments in crypto space, the Central American nation El Salvador on Saturday had announced plans to make Bitcoin a legal tender. Separately in a Twitter thread, El Salvador President Nayib Bukele stated “Bitcoin has a market cap of $680 billion dollars. If 1% of it is invested in El Salvador, that would increase our GDP by 25%. On the other side, Bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances. The adoption will make El Salvador the first sovereign nation in the world to do so.
Back in India, the Reserve Bank of India (RBI) had last month asked banks that they cannot refer to its 2018 crypto-ban order, which was quashed by the Supreme Court last year, to caution their customers against dealing in virtual currencies. “It has come to our attention through media reports that certain banks/ regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular dated April 06, 2018,” a notification by RBI had stated.
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