“Crypto is an alternative investment class but a complex derivative”

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Cryptocurrencies are in troubled waters once again as the government has put a bill to be discussed in the winter session of Parliament, apparently seeking to ban all private cryptocurrencies.

While some media have said the proposed ban will encompass all private cryptocurrencies, including their mining, holding, and trading, others have reported that the government may treat cryptocurrencies as financial assets.

Saugata Bhattacharya, Executive Vice President and Chief Economist, Axis Bank called crypto an alternative investment class such as oil, copper, gold and stocks, but said “… these are derivatives complex “.

Bhattacharya was speaking at the Mumbai Micro Experience of FinTech Festival India 2021-22.

Mrutyunjay Mahapatra – Member of the Board of Directors of RBI Innovation Hub and of the Supervisory Board of NABARD, Member of the Insurance Advisory Board of India said “the systemic risk and the psychological risk of hampering political stability and stability social due to economic instability, even if the smallest cause concern in the minds of policymakers. “

He added that the central bank’s apprehension about digital tokens stems from the latter’s characteristics of low barriers to entry, a lacking supervisory framework and uncontrolled cross-border payments. He also pointed out that the central government and the RBI support innovation.

“The point of view of the Indian government and the Reserve Bank of India is that regulations should not thwart or hinder innovation. The only thing is whether the innovation should occur in a regulated ecosystem or a federated ecosystem, that is the debate. I think the government will leave some leeway for innovation and it will be a calibrated release of innovative and creative forces rather than making it open. “

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