Nandan Nilekani, the co-founder of Infosys, believes that tokens should be used as an asset class in India’s cryptocurrency market. This Bangalore-based IT services firm is once again demonstrating its support for virtual currencies.
Nilekani believes that Indians can accept cryptocurrency just as they can gold or real estate. Virtual currencies, according to Infosys’ president, have storage value in addition to transactional value.
All of these remarks are made in the context of India’s present cryptocurrency restriction, which has been debated since its beginning but will be increased in 2021. India is one of the countries that has made the greatest efforts to regulate the cryptocurrency sector since its inception. Government officials have labeled Bitcoin tokens as a money-laundering scam.
Infosys is a bitcoin supporter
In an interview with Nilekani, he expressed his full support for the bitcoin sector. This information technology industry veteran believes that decentralized currencies will play a significant role in the economy. According to the expert, the invasion with Bitcoin transactions and its usage as storage may not function.
Nilekani played a pivotal role in the development of India’s Aadhaar identity system. He concluded that businesses and individuals that take advantage of the bitcoin industry would grow in popularity. Crypto fans will prioritize the market and utilize their riches to store their assets.
However, Nilekani has backed the bitcoin “value reserve” idea. Perhaps Nilekani’s viewpoints are correct since the crypto market has shown to be an incredible storehouse.
In India, there are several reasons for considering tokens as an “asset class.”
Nilekani believes that Indians should own cryptocurrencies as an “asset class” after leaving ClubHouse in March. Nilekani met with Blume Ventures’ Karthik Reddy and singled Balaji Srinivasan, as well as other investors.
Because of their volatility and high cost per transfer, virtual currencies are used as deposits rather than transactions. Because the transactions of these decentralized currencies do not occur at the UPI level, their market is not seen as convenient. Thousands of daily transactions in India lead the market to crash, linked to the weak market.
India should reconsider its stance on cryptocurrency. Perhaps, in light of this new scenario, the country’s authorities will relax the rules that have negatively impacted Bitcoin.
Cryptocurrencies would be a real-estate-like asset class. Nilekani has been promoting this work method for a long time, and the Indian government has backed him up. In 2019, the president of Infosys organized a group to discuss digital payments and the avoidance of cryptocurrency fees.