Sandeep Nailwal – CEO and Co-Founder of Polygon – sees massive chaos reigning in the Indian cryptocurrency market. According to him, this disorder is causing thousands of developers, investors, entrepreneurs, and others to move to countries with more supportive regulatory frameworks.
The Uncertainty Causes a Crypto’ Brain Drain’
It is safe to say that India’s digital asset environment is controversial. The country is home to millions of crypto-investors, some of them even switching from gold to bitcoin. On the other, the government and the nation’s financial watchdogs contemplate how to approach the industry for years, causing uncertainty in the process.
The authorities tried to make bitcoin and other digital currencies illegal. These plans were reiterated in November 2021 when they proposed a China-like ban. The officials soon changed their stance and stated that regulation was better than a blanket ban.
Regardless of their final decision, Polygon’s Co-Founder – Sandeep Nailwal – argued that this uncertainty causes many Indian developers, investors, and entrepreneurs to leave their homeland and settle in other countries with established rules.
He stated that he would like to live in India and continue developing his blockchain protocol. However, it is extremely difficult to make such progress in India.
“Overall, the way the regulatory uncertainty is there and how big Polygon has become, it doesn’t make sense for us or for any team to expose their protocols to local risks.”
It is worth noting the possibility that India could be a space-based crypto powerhouse by setting up appropriate rules. India has a population exceedingly large of 1.4 billion people. Many of these people are young and have a lot of knowledge about technology. India is second in crypto adoption behind Vietnam.
India’s Central Bank is in Favor of CBDC
While the authorities’ viewpoint on bitcoin and altcoins is rather negative, that’s not the case with central bank digital currencies.
The nation with the second highest population plans to launch an e-rupee this year. The Reserve Bank of India said it would offer trial programs to see how the product would work with the local currency system.
Nirmala Sitharaman – Finance Minister of the country – praised the efforts and predicted that using the CBDC will give a “big boost” to the local economy.
India’s PM – Narendra Modi – is also keen on the idea. He believes that online payments will be faster and more secure with the digital rupee. They could also revolutionize fintech by opening up new opportunities and strengthening global economies.