An EY executive who just recently went to India and met a variety of federal government firms has voiced his viewpoint about the future of cryptocurrencies in the nation. He thinks that bitcoin has no practical use, is simply another “foreign” currency, and its extensive adoption might be “very damaging to the global economy.”

‘No Practical Use’

Paul R. Brody, EY’s Global Innovation Leader (Blockchain), has shared his ideas on the future of the crypto market in India after his current check out to the nation. EY is among the world’s biggest specialist services companies and among the “Big Four” audit companies.

Brody explains himself as “responsible for driving EY’s initiatives and investments in blockchain technology across consulting, audit, and tax business lines.” In an interview with Forbes India released Monday, he was asked: “Do you see any future for bitcoin in India?” The executive responded:

I don’t see any reason individuals ought to be restricted from owning them. I see bitcoin as simply another ‘foreign’ currency — just one without a nation. That being stated, I see no practical use for bitcoin or almost any other cryptocurrency.

He thinks that “the future of business transactions on the blockchain are tokenised fiat currencies,” typically described as stablecoins. “Most people and companies earn their revenue and spend their money in local currency,” he mentioned.

Widespread Adoption Possibly ‘Very Damaging’

Referring to the argument that bitcoin “is an inflation-resistant currency,” Brody asserted that “In fact, it is a highly deflationary currency model, given the limited supply.” He even more declares that “Most economists agree that deflation is, in fact, extremely bad for economies. Inflation, particularly out of control hyper-inflation, has not been a real risk in mature economies for decades,” concluding:

Widespread adoption of bitcoin might be really harmful to the worldwide economy.

The EY executive feels much more favorable about blockchain innovation than cryptocurrency, specifying that “The potential positive impact of blockchain on the Indian economy is enormous.” He elaborated:

While there are some regulative concerns, our conversations with federal government firms in India recommend that they are prepared and interested in making use of this innovation for company applications.

He also exposed that his company has “many clients doing business using blockchain, from crypto assets to supply chain operations,” stressing that “We expect to see big growth in the near future in tax, healthcare, government, financial management and cybersecurity.”

On the adoption of blockchain innovation, Brody informed the news outlet that “The association of blockchain with cryptocurrencies has probably had a negative effect.”

Bitcoin and Regulation in India

While the Indian federal government has consistently cautioned about the threats of trading cryptocurrencies, Indians continue to trade them even with the banking limitation in location. Recent interviews with a number of regional cryptocurrency exchanges expose that BTC has been the most popular cryptocurrency in the nation amongst traders.

The Reserve Bank of India (RBI), the nation’s reserve bank, provided a circular in April in 2015 prohibiting banks under its control from offering services to crypto organisations. Local exchanges consequently stopped permitting users to withdraw rupees and a variety of them introduced peer-to-peer (P2P) services to supply an alternative method for users to deposit and withdraw INR.

In about 2 weeks, the Indian federal government is anticipated to produce a regulative structure for cryptocurrencies as purchased by the nation’s supreme court on Feb. 25. The federal government informed the court at the time that the committee accountable for preparing the guideline is in its lasts of consideration.

What do you think about Brody’s viewpoint on the future of crypto in India? Let us understand in the comments area below.

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