![Nandan Nilekani](https://img.etimg.com/thumb/msid-89439284,width-650,height-488,imgsize-130236,resizemode-75/nandan-nilekani.jpg)
Pointing out that while the country will notch up a global first with the launch of its central bank digital currency, existing technology and infrastructure rails like the Unified Payments Interface (UPI) and Aadhaar, will “accelerate” its launch, said the 66-year old technocrat, who is also the prime architect of the biometrics-based unique identity programme.
Watch: Why Nandan Nilekani feels digital rupee should be left anonymous
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“I think it's a very good step that the government has taken… The digital rupee will complement the existing infrastructure we have created,” Nilekani said in an exclusive conversation on Tuesday.
“The idea is that India takes a lead both for wholesale transactions as well as for retail. The existing rails that India has laid (can) be used to accelerate the digital rupee”, (which) is “a better option than creating stablecoins,” he added.
Last week, Finance Minister Nirmala Sitharaman also proposed that income from virtual digital assets (VDAs) will be taxed at the rate of 30%, applicable from April 1. These will include gains from cryptocurrency transactions and assets like the non-fungible tokens.
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India’s lead in recognising that stablecoins can be potentially weak links in the chain and coming out with a CBDC is a “good thing”, according to Nilekani whereas in the US, for example, stablecoins are based on dollars.
“Stablecoins can also become unstable coins if there is a run on that currency because people are not clear about whether the reserves behind those stable coins are adequate in case everybody wants to convert it to real dollars,” he said.
Globally, the rapid digitisation of economies is throwing up a major challenge as countries seek to strike a balance between allowing a certain degree of privacy in electronic payments while ensuring regulatory compliance.
“I think the digital rupee should be anonymous, because one of the concerns obviously is that if all payment transactions are recorded and visible, it has other issues of surveillance,” Nilekani said.
Stoking innovation
Nilekani, who has championed the creation of multiple open technology networks that startups and technology firms are leveraging to further innovation, said the digital rupee architecture will lead to similar innovations at the front end. “It will be very easy to take the digital rupee to consumers who have the UPI application since it will facilitate easy transactions in digital rupees or help convert from digital to regular rupee,” he said.
Outpacing rivals
The non-executive chairman of India’s second largest software exporter said with Infosys growing at “market leading rates” in recent times , its status as “the bellwether of the industry” has been restored.
Last month, Infosys, which has been outperforming its peers including larger rival Tata Consultancy Services, increased its yearly revenue forecast by three percentage points and said that it will grow revenue by 19.5%-20% in the ongoing fiscal that ends on March 31.
Sustained investments over the last four years have helped Infosys gain market share as clients have stepped up spending on digital technologies to transform their businesses, according to analysts.
“I went back to Infosys when there were some challenges… It's been more than four years and it's been a good experience. I think we've been able to restore Infosys as the bellwether of the industry,” said Nilekani, who returned as chairman of the Bengaluru-headquartered software major in late 2017.
Terming Salil Parekh as a “terrific CEO leading from the front”, he pointed out that Infosys now has market leading growth rates and its offerings have been brought in line with what the market needs. “(There is) also massive investment in people and digital,” he said.
Responding to a query on whether he had a timeline in mind for when he will step away from the firm, Nilekani 66, said, “No, there's no (timeline) I mean, (I will be there) as long as required and obviously, once a suitable successor is (found).”
Digital hygiene
Nilekani also spoke about his recently released book ‘The Art of Bitfulness: Keeping calm in the Digital World’, which he has co-authored with iSPIRT fellow Tanuj Bhojwani. He said that it is not possible to live a “monastic” life without devices but people have to draw up their own rules on how to effectively use their devices and technology, without getting overwhelmed or burnt out.
He added that India is “bearing around to the right set of decisions on cryptos and of course NFT in the form of digital assets on which you pay tax. When you sell a piece of digital art and make money you pay tax”.