The chairman and managing director of Reliance Industries (RIL), Mukesh Ambani, has endorsed the Indian government's proposed data privacy and cryptocurrency legislation. Mr Ambani, a proponent of Indians owning and controlling their own data and the country crafting strong laws around how digital information is handled and shared, said India was implementing the most forward-thinking policies and regulations. India's richest man also stated that he believes in blockchain technology, claiming that it can provide unprecedented security, trust, automation, and efficiency to nearly any form of transaction. He said these a few days ago during an interview at Infinity Forum, a financial technology event.
The government is planning to introduce a bill in Parliament that will classify cryptocurrencies as financial assets while protecting small investors. The bill is likely to set a minimum amount for investing in cryptocurrencies while prohibiting their use as legal tender.
Mr Ambani believes that the country is on the “right track” when it comes to “introducing the data privacy bill, and the cryptocurrency bill”. Here are some more reasons for Mr Ambani backing cryptocurrency and blockchain technology:
Believer in blockchain technology: Mr Ambani is a big believer in blockchain technology, which, he feels, is different from cryptocurrency. According to him, “blockchain is very important for a trust-based equitable society”, and can be used to modernise the supply chains that form the lifeblood of the economy.
Data is the “new oil”: He also said that data was the “new oil”, but, then went on to differentiate it from “the traditional oil”. Ambani said that while traditionally oil was extracted only at a few places, thus generating income only for select countries, data can be generated and consumed anywhere and by anyone, and can create value equitably, across sectors, geographies, and across economic boundaries.
Digital-first revolution: Mr Ambani reiterated that technology will transform the world, and said that this was the digital-first revolution. In this, digital will be the way of life for people, which will be used in every technology. Five or six different types of technology will merge and revolutionise the entire planet.
On the agenda of the current winter session of Parliament is the introduction of a bill prohibiting all private cryptocurrencies, with certain exceptions to promote the underlying technology of cryptocurrency and its purposes.
Even though the government is considering taxing gains from cryptocurrency investments, the Reserve Bank of India wants to outright ban digital assets because they threaten the country's macroeconomic and financial stability.