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“No value in the Crypto asset”, KV Kamath

According to reports, former chief of the New Development Bank of BRICS countries, KV Kamath shares his thoughts on regulating cryptocurrencies in India. While replying to questions post a fireside chat at the Morningstar Investment Conference at Mumbai, that,  “I echo what the Reserve Bank of India governor says that as a banker I don’t see value in that asset ( Crypto) so I’m a little uncomfortable… I’m a little sceptical.” 

The Morningstar Investment Conference is centred on cutting-edge research, insights that highlight its key findings, and analysis that identifies trends and patterns to help you get a broad perspective.

Veteran banker KV Kamath has stated that he is sceptical of cryptocurrencies and doesn’t see much value in the asset, despite the fact that numerous stakeholders, including the government, Reserve Bank of India (RBI), start-ups, investors, and various industry participants, are debating the future of cryptocurrencies in India.

“No value in the Crypto asset”, KV Kamath
“No value in the Crypto asset”, KV Kamath

He further stated : “Central Bank Digital Currency has to happen. Crypto currency, I’m not very sure.”

According to him, conversations combining cryptocurrency and blockchain don’t belong in the same continuum. In his opinion as an engineer Blockchain is unique and can be used on its own, but payments must become more efficient.  He further added  “Great if blockchain is going to provide it.

However, Kamath contends that blockchain should not be considered in isolation from cryptocurrencies because it has the potential to improve the effectiveness of payment systems.

Kamath’s comments, incidentally, come as the federal government is preparing to submit its position on cryptocurrencies to the Financial Action Task Force (FATF) Mutual Evaluation by early 2023. The country’s efforts to stop money laundering, the financing of terrorism, and the spread of WMD are evaluated in the FATF Mutual Evaluation Report.

However, Since the international watchdog for money laundering and terrorist financing requires countries to have a firm position on the legality of crypto assets in order to be compliant, India is currently not FATF-compliant with regard to crypto assets.

Nirmala Sitharaman, the Indian Finance Minister, presided over a meeting of the Financial Stability and Development Council (FSDC) that was recently held and covered topics relating to crypto assets. The council emphasised the urgent requirement for a clear decision regarding whether cryptocurrencies are considered legal tender.

The finance minister recently urged the International Monetary Fund (IMF) to take the lead in regulating crypto assets during a meeting with Kristalina Georgieva, the IMF’s managing director.

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