'India should not lose out on benefits of crypto', say experts after RBI, FM's red-flags
India should not deprive itself from the benefits of cryptocurrencies, experts said, a couple of days after Union Finance Minister Nirmala Sitharaman reiterated the Reserve Bank of India's apprehensions on the unregulated virtual currencies.
Sitharaman, in a statement issued in the Lok Sabha on July 18, said the RBI is of the view that cryptocurrencies "should be prohibited". The central bank has marked concerns over its potential "destabilising effect" on the monetary and fiscal stability, she added.
The experts and industry players whom Moneycontrol spoke to stressed that despite the regulatory concerns, the government should consider the benefits that can come through the widespread usage of cryptocurrencies.
"What we are saying is that the governments across the world are figuring out how to regulate crypto. Hence while the asset class is being regulated globally, India should not lose out on its benefits," Rajagopal Menon, Vice President at WazirX, said.
"India must take a step to collaborate and understand the best practices so that we do not lose out in the longer term. Developers are working towards a vision of creating the next Facebook and Google in Web3 from India and the government can benefit immensely by helping these entrepreneurs realise their goals," he added.
Menon was of the view that India should take an example of countries that have already regulated the crypto sector and see how they have benefited in job creation, economic growth and empowering entrepreneurs.
According to Mridul Gupta, COO at CoinDCX, cryptocurrencies are "borderless asset" and global regulations would foster "mass adoption".
"2021 has been a landmark year for both the blockchain and crypto industry. We have seen increasing adoption
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