Co-founder of Infosys: "Cryptocurrencies are too energy consuming to make payments" – Bits Media

Co-founder of Infosys Nandan Nilekani (Nandan Nilekani) considers, that digital currencies are too "energy intensive" to make settlements, however, they can be suitable assets for the preservation of value.

Indian billionaire said, that crypto assets do not have functions of ordinary money, and given their volatility, they cannot become a full -fledged tool for calculating. He added, that the system of instant payments Unified Payments Interface (UPI), created by the National Payment Corporation of India (Npci), more effective for making daily payments. Note, that Nilekani took an active part in the development of UPI.

Wherein, Cryptocurrencies can be bought and sold as ordinary goods, by analogy with gold and real estate, Therefore, they can be considered a good means of saving, Nevlekani said. In addition to high volatility, The technological magnate called another drawback of cryptocurrencies, preventing them from using them as a payment tool - the consumption of a large amount of electricity during mining. Nilekani did not indicate specific crypto assets. More likely, He meant cryptocurrencies, using the consensus method of evidence (Proof-of-Work, PoW).

Nonetheless, Nilekani is considered one of the most famous cryptocurrency defenders in India. He considers it necessary to develop clear rules for regulating the digital assets industry, Since the development of cryptocurrency startups will contribute to the prosperity of the Indian economy.

Recall, that last week the Central Bank of India clarified its position in relation to cryptocurrencies. The Central Bank does not prohibit commercial banks to serve cryptocurrency firms, However, he warned about the risks of investment in digital assets.