Nandan Nilekani, the co-founder of Infosys and Aadhaar, shared his thoughts on how cryptocurrency will bring about financial inclusion by eradicating the need for a central repository.
With the rise of cryptocurrencies, the world has seen an influx of both new and old investors. However, crypto assets are not always easy to obtain for those in developing countries. Nandan Nilekani believes that crypto-assets can be used as a tool to foster more financial inclusion. This is because crypto assets provide an alternative currency that can offer people access to the global economy and help them avoid the pitfalls of their local economy.
In a recent interview, Infosys CEO Nandan Nilekani mentions that crypto assets are worth considering and can be used to bring about more financial inclusivity.
There is a role for crypto as assets but they obviously will have to follow all the laws and make sure that it doesn’t become a backdoor for money laundering … they have to use that [as] an entry point to get lot of young people into financial markets.He said.
The concept of cryptocurrency is not new by any means. It has existed since 2009 when Satoshi Nakamoto created Bitcoin, but as its popularity begins to grow exponentially in recent years, it has become popular among many people who would otherwise be excluded from mainstream banking systems.
India is considering banning cryptocurrencies, including Bitcoin and other digital currencies. However, the country’s financial regulators are still working on how to regulate the cryptocurrency market to avoid anti-competitive behaviour and money laundering.
Nilekani’s comments come at a time India is planning to discourage trading in cryptocurrencies and ban them. The country’s federal government is looking to classify cryptocurrencies as an asset class and is seeking to impose capital gains on them, which will make it harder for traders to use cryptocurrency domestically.