Cryptocurrencies don't appear to be true financial innovation: India's CEA

They are a case of 'regulatory arbitrage' and could be risky for the country, says Nageswaran

Cryptocurrencies appear to be "regulatory arbitrage" and not true financial innovation, said Chief Economic Adviser V Anantha Nageswaran on Thursday, reiterating doubts expressed by other authorities about the digital assets.

“I would reserve judgment on whether it is truly innovative or truly disruptive in a positive sense. Or is it something we will come to regret?” Nageswaran said at the International Fintech Festival hosted by industry lobby ASSOCHAM.

Nageswaran said the Finance Ministry and the Reserve Bank of India were in agreement about the digital assets.  "Much of what is happening in the space of cryptos or decentralised finance – and I