Indian Crypto and Blockchain Analyst, Vikram Nikkam Shares Thoughts on Present and Future Crypto Presence in India
The passionate individual and current Founder and CEO of InstaCrypto, Vikram Nikkam, has expressed his viewpoint on cryptocurrencies in India. Nikkam seems to believe highly in the relatively new market, as well as its ability to stabilize the Indian economy over the long run. Most importantly, he voices the need for regulations, which should be done in a fair manner that is inclusive.
The Effect of RBI’s Crypto Ban on Crypto Investors
Vikram Nikkam does not seem to be surprised by the central bank’s decision to ban cryptocurrencies, as it would imply the loss of power on their end. He added that such establishments will be taking the necessary measures to prevent the growth of decentralized system, which only shows growing fear.
As for the Indian Crypto Market, he shared that “people that were just beginning to gain interest in crypto are taking a step back.” He also considered their culture at hand, as most Indians “automatically refrain from doing anything against the law.” He believes that Reserve Bank of India’s (RBI) decision isn’t the only one preventing investors from onboarding, but also Bitcoin’s “correction phase”, which he views as the main hesitation for the people.
Indians Might Turn to Cash to Hide Crypto Investments?
According to Nikkam, India has become a country of online transactions, as opposed to the use of cash. He noted that “people are using their cards and payment systems like UPI, BHIM, etc. more than they ever used to.” Unfortunately, RBI’s ban could mean big problems, as Indians might retort to hard cash, which he sees as both “most liquid and untraceable”, for crypto investments.
He also mentioned that due to the lack of traceability in such sources of income, taxing them is difficult. Hence, if Indians use cash to buy or sell cryptocurrencies, then that could possibly lead to an increase in illegal activities. The most crucial point that Nikkam made, went as follows:
“This will be quite disastrous for the government and the Indian economy […] There will be no record where the crypto came from and no account of whom it belongs to, bringing us once again to square one.”
A solution the crypto analyst proposes instead of the ban, is RBI’s efforts in regulating cryptocurrencies, which will promote easy supervising.
Country Crypto Attached to Fiat Cash to Pick Up Economy
A country cryptocurrency pegged to its fiat cash will surge the Indian economy, says Nikkam. The argument he makes here is the fact that the implementation of blockchain technology will speed up money transactions. He also noted that the current stance of the Indian economy is a result of “corruption in governments and financial institutions that turn a blind eye to […] hard earned by illegal entities.”
As previously mentioned, emphasis has been placed on the notion of regulation as being the foundation of blockchain and cryptocurrency acceptance. In terms of how a national cryptocurrency will help to better the Indian economy, Nikkam said:
“If we have our own crypto, the Indian rupee will not get devalued v/s dollars. There will therefore be no loss of purchasing power for Indians in the Global markets. Indians will have a better exchange rate for their money […] enabling Indians to explore foreign markets.”
Indian Mentality Needs Changing, Ripple Acceptance and Potential of Bitcoin
Nikkam deems that the Ripple team managed to score the support of “those that are currently in power”. He further argues that Ripple has been accepted by the likes of the Indian bank due its heavily centralized system. Ultimately, he views the cryptocurrency’s acceptance as nothing more than a way to get incentivized.
As for Bitcoin and other altcoins that remain, Nikkam contends that the Indian mentality needs to change in order to consider the option of a decentralized system. If this shift does not occur, he trusts that no real change will be made as “the rich will get richer and the middle class will get poorer.”
Final Hearing on Crypto Regulations, For or Against Indian Public?
In terms of decentralization, cryptocurrencies are as necessary as regulations that are “fair and transparent so as to help the general public, the government and thereby the country’s economy.”
He also suggested the Know-Your-Customer (KYC) system as a solution for traceability of crypto transactions, owners and taxation laws. Adding that, “we just have to hope and pray that the supreme court makes a decision in favour of the Indian public by supporting de-centralised cryptocurrencies.”
Indian Crypto Market
The InstaCrypto CEO noted that the Indian crypto market isn’t the only one that is poorly performing, as downward trends are present on a global scale. However, he believes that India has an advantage as it is “being transacted at a premium”.
He concludes that India’s presence in the crypto sphere is possible given that higher officials open their minds to the concept, along with a fair regulation that benefits all, eventually resulting in “a positive turn around for our country’s economy as well.”