Uday Kotak discussed how investors are increasingly using cryptocurrency as a hedge to safeguard their investments during his speech at the SEBI NISM Research Conference. He highlighted the growing acceptance of cryptocurrency in developed economies like the USA, Europe, and the UK as a significant aspect of the future.

Kotak stressed the importance of clear policymaking and regulation in India's transition from savers to investors, urging greater public consultation on these matters.

Kotak emphasized the rising trend of investors considering cryptocurrency as a viable investment option, noting its impressive performance in recent years. He underscored the need to protect cryptocurrencies from inflation and poor economic policies while addressing the potential threat they pose to capital markets and the vital role regulators can play.

At the SEBI NISM Research Conference, experts, including Kotak, discussed the challenge of raising awareness among Indian investors about the risks associated with investing in cryptocurrencies, contrasting this with the growing acceptance of cryptocurrency as a hedge in developed nations. Kotak highlighted Bitcoin's remarkable efficacy, with its value more than doubling over the past year, surpassing $70,000.

Furthermore, Kotak highlighted the need for developed nations to reallocate resources from capital formation to cryptocurrencies. His remarks align with recent statements by SEBI Chairperson Madhabi Puri Buch, emphasizing the importance of instant settlement in the regulated securities market to compete with asset classes like cryptocurrencies that offer instant liquidity.

Kotak also expressed confidence in the existing checks and balances to prevent severe market issues and discussed the remarkable growth in futures and options markets, emphasizing that the situation is under control. These remarks come at a time when the cryptocurrency market is experiencing a resurgence, with Bitcoin reaching record highs.