With the use of cryptocurrencies in India under a near ban and the regulatory waters still unclear, Rajnish Kumar, Chairman of the State Bank of India (SBI), has become the latest official in the country to speak about crypto regulation.
According to The Economic Times, Kumar shared his thoughts on the matter while discussing the current phase of the Indian economy and the potential of the country to keep growing in the years ahead.
When quizzed on the issue of cryptocurrencies, Kumar reportedly noted that the world’s move to digitization means that digital currencies can become a mainstay.
However, he argued that when that happens at some stage, a regulated cryptocurrency would be a better bet than an unregulated one, a fact that was recently reinforced in a bill seeking the creation a state-backed digital currency in India
Kumar also highlighted that regulating the use of cryptocurrencies is vital to prevent their misuse since there’s also a dark side of the internet. He is quoted in the report as saying precisely:
“Let's see. Because there's a dark side of the internet also. There can be misuse of the digital currencies. That is why regulation is a must.”
Interestingly, though, while calling for regulatory oversight on the use of cryptocurrencies, Kumar confirmed that efforts are already underway to figure out how banks in the country could adopt the underlying blockchain technology to improve their operations.
In other news regarding the adoption of technology India, we reported last month that state-backed blockchain incubator, Kerala Blockchain Academy (KBA), rolled out a blockchain-based solution that allows the issuance of tamper-proof educational certificates.