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CRYPTOCURRENCY BRAIN DRAIN IN INDIA IS ABSOLUTE MADNESS, SAYS POLYGON CO-FOUNDER
Sandeep Nailwal, CEO and co-founder of Polygon, sees the massive chaos reigning in the Indian cryptocurrency market. In his opinion, because of this disorder, thousands of developers, investors and entrepreneurs are leaving for countries with a more friendly regulatory framework.
UNCERTAINTY CAUSES CRYPTOGRAPHIC BRAIN DRAIN
It is safe to say that the digital asset environment in India is ambiguous. On the one hand, there are millions of crypto investors in the country, some of whom have even changed their strategies from gold to bitcoin. On the other hand, the government and national financial observers have been thinking for years about how to approach the industry, which causes uncertainty in this process.
At some point, the authorities wanted to criminalize the use of bitcoin and other digital currencies. In November 2021, they confirmed these plans by proposing a ban on the industry, as in China. However, soon after that, officials changed their position, saying that regulation would be a better step than a complete ban.
Regardless of their final decision, Polygon co-founder Sandeep Nailwal argued that this uncertainty is forcing many Indian developers, investors and entrepreneurs to leave their homeland and move to other countries with established rules.
The executive director stated that he wants to live in India and continue to develop his blockchain protocol. Nevertheless, the situation there is extremely unfavorable for such promotion:
"In general, given the existing uncertainty regarding regulation and how big Polygon has become, it makes no sense for us or for any team to expose their protocols to local risks."
Sandeep Neilwal, source: Entrepreneur
It is worth noting that the introduction of appropriate rules in space can turn India into a crypto power plant. The population of the country is 1.4 billion people, as many of them are young and have significant knowledge in the field of technology. Moreover, India ranks second after Vietnam in terms of cryptocurrency adoption.
CENTRAL BANK OF INDIA SUPPORTS CBDC
Although the attitude of the authorities towards bitcoin and altcoins is quite negative, this does not apply to the digital currencies of the central bank.
The second most populous country intends to introduce the electronic rupee last year. The Reserve Bank of India has announced that it will launch trial programs to study how a financial product will interact with the local monetary system.
Nirmala Sitharaman, the country's finance minister, praised the efforts and predicted that the use of CBDC would give a "big boost" to the local economy.
Indian Prime Minister Narendra Modi is also interested in this idea. He believes that the digital rupee will make online payments faster and safer. In addition, they can revolutionize the financial technology sector, creating new opportunities and strengthening the global economy.
