Cryptocurrency is here to stay, says Paytm founder Vijay Shekhar Sharma

Market


Vijay Shekhar Sharma today said cryptocurrency is here to stay and it is fundamentally based on cryptography, the study of secure communications techniques, news agency PTI report.

The Paytm founder’s comments come as the government is all set to introduce the cryptocurrency Bill in the Parliament starting 29 November.

The Bill seeks to prohibit all private cryptocurrencies in India, but will allow certain exceptions to promote the underlying technology of cryptocurrency and its uses, the government said in a notification on Lok Sabha website. The bill also aims “to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India”.

Amid lightning pace developments in the cryptocurrency space in the country, the industry has urged investors to remain calm and not arrive at a rushed conclusion.

Speaking at an interactive session organised by ICC virtually, Sharma said crypto is Silicon Valley’s answer to Wall Street.

“I am very positive about crypto. It is fundamentally based on cryptography and will be the mainstream technology in a few years like the internet which is (now) part of daily life,” he said.

Currently, there are no particular regulations or any ban on use of cryptocurrencies in the country. Prime Minister Narendra Modi last week held a meeting on the cryptocurrencies with senior officials and indications are that strong regulatory steps could be taken to deal with the issue.

Sharma said it is being used in a speculative manner now. “Every government is confused. In five years, it will be the mainstream technology”.

People will realise how the world was like without crypto, he claimed but added that it will not be a replacement of the sovereign currency.

Sharma also said once Paytm’s revenue crosses USD one billion, it will be taken to the developed countries.

“Now Paytm in a JV with a Japanese entity is running Japan’s largest payments system. Later we will go without a partner,” he said.

Paytm, which went public this month, is driving financial inclusion among the Indians who do not have access to formal finance, he said.

“Paytm will reach financial services at low cost to all. Going public will help a lot as it will give access to capital and talent,” he stated.

Sharma claimed international investors have a better understanding of Indian entities than Indian investors.

“It is hard to comprehend what the government means by private cryptocurrencies. Bitcoin, Ether etc. are public crypto built on public blockchains and have their own specific use cases,” said Nischal Shetty, founder of WazirX.

“They are needed to run smart contract and write to the distributed ledger that they’re built on top of. People cannot use INR or USDT to pay for fees on the Bitcoin or Ethereum Blockchain,” Nischal Shetty further added.

BuyUcoin CEO Shivam Thakral said he expects the Bill to accommodate the aspirations of Indian crypto owners, Indian crypto entrepreneurs, and investors who have put their faith in India’s crypto growth story.

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