Cryptocurrencies Yet To Pass Muster As Fiat Currency: Chief Economic Adviser
NDTV
Chief Economic Adviser V Anantha Nageswaran said on Thursday that crypto currencies have yet to pass the test to become fiat currency
Sounding a note of caution, Chief Economic Adviser V Anantha Nageswaran said on Thursday that crypto currencies have yet to pass the test to become fiat currency and at the same time it would be difficult to regulate them.
He further said that unlike fiat money, crypto currencies cannot satisfy basic requirements such as having store value, widespread acceptability and unit of account.
Referring to decentralised finance (DeFI), he said: "In my opinion, while it is considered innovation, I would reserve my judgement whether it is truly innovative or truly disruptive in a positive sense or is it something that we will come to regret." Mr Nageswaran said that he agreed with RBI Deputy Governor T Rabi Sankar who had been saying that as of now there appeared to be a case of regulatory arbitrage with regard to crypto currencies and decentralised finance rather than a case of true financial innovation.
