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Crypto can bring about financial inclusion: Nandan Nilekani

Crypto can bring about financial inclusion: Nandan Nilekani

Crypto assets are worth considering and can be used to bring about more financial inclusion, Nandan Nilekani, chairman of software services exporter Infosys said.

New Delhi has said that it will allow only certain cryptocurrencies to promote the underlying technology and its uses. New Delhi has said that it will allow only certain cryptocurrencies to promote the underlying technology and its uses.

Crypto assets are worth considering and can be used to bring about more financial inclusion, Nandan Nilekani, chairman of software services exporter Infosys, said at the Reuters Next Conference on Wednesday.

"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," said Nilekani, who co-founded Infosys, India's No.2 IT company in 1981.

"If we have a very well regulated and legal, lawful crypto market, not as currency but as assets, and lot of young people build innovative applications around that then these young people could create a wave of global companies," Nilekani said.

In his first public comments on the subject, India's Prime Minister Narendra Modi in November said all democratic nations must work together to ensure cryptocurrency "does not end up in wrong hands, which can spoil our youth"

New Delhi has said that it will allow only certain cryptocurrencies to promote the underlying technology and its uses.

"If we have a very well regulated and legal, lawful crypto market, not as currency but as assets, and lot of young people build innovative applications around that then these young people could create a wave of global companies," Nilekani said.

India has 15 million to 20 million crypto investors, according to industry estimates, with total crypto holdings of around 400 billion Indian rupees ($5.35 billion).

India's central bank's digital currency may see its pilot launch in the first quarter of the next fiscal year.