Image: Republic World
Speaking at Republic Economic Summit, Nouriel Roubini, CEO of Roubini Macro Associates & Professor of Economics at the New York University's Stern School of Business backed the Indian government's stance on private cryptocurrencies. Speaking to Republic Media Network Editor-In-Chief Arnab Goswami on 'All Geared Up - India's Role In The Global Economy', Nouriel Roubini stated that calling Bitcoin or cryptocurrencies as 'currency' will be a 'misnomer'. Roubini explained his point in four detailed reasons.
When quizzed about the increasing trend in cryptocurrencies investments despite its volatile nature, Nouriel Roubini said, "Calling these Bitcoins or rather cryptocurrencies as 'currency' is a misnomer. Anybody who knows anything about monetary theory, knows that for something to be a currency first of all there must be a unit of account but not in its price in bitcoins. Two, it has to be a scalable means of payment."
Roubini also stated, "It has to be a stable source of argue relative to goods or services. It's so hardly volatile that it's not a stable source of argue." Added that it has to be in numbers so that you can compare around the price of different goods and said, "But if you need Pepsi, Cola, Coca Token you cannot even compare their price of goods and services."
"Suppose you have a mortgage that was a unit of accounting bitcoin and then the price of bitcoin goes up say by 50%, then you go bankrupt because the real bargain rupee or dollar of your bitcoin, the mortgage, goes through the roof. So, it has to be a stable store of argue relative also to the price of financial assets. So in my view calling them, cryptocurrency is a misnomer. They don't have any feature of a currency."
Furthermore, Roubini stated that India needs to do structural reforms as it has potential growth already close to 7%, and with more structure, would be closer to 9%.
#RepublicSummit | India has a potential growth already close to 7%, and with more structure, would be closer to 9%, whereas China is at 5%, possibly lower: Economist Nouriel Roubini https://t.co/POzXbcH8iR pic.twitter.com/HYuhup8beY— Republic (@republic) November 26, 2021
According to the recent update on the crypto law, the Centre has made a decision to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the upcoming winter session of the Parliament. This comes after India’s digital currency market worth stood at $6.6 billion in May, compared to $923 million in April 2020, as per the Chainalysis’ Global Crypto Adoption Index of 2021.