Infosys rejects plan to put cash into Bitcoins

  • Infosys CEO Salil Parekh stated the Infosys has no plans to put its cash into Bitcoins. 
  • As of December 2020, Infosys had over $4.5 billion worth consolidated cash and investments on its books.
  • There are many companies, including Tesla, who have invested a significant amount of money in Bitcoin.

During an interview with money control, Infosys CEO Salil Parekh has confirmed that India’s 2nd largest IT company will not convert its hefty cash into Bitcoin. However, he confirmed that Infosys would continue to evaluate in the future, how the world evolves for cryptocurrency.

Tesla has recently spent $1.5 billion to buy the cryptocurrency and announcing as a future acceptable payment method for its products. Last year, a leading Business Intelligence Software Firm MicroStrategy purchased over 21 thousand Bitcoin for $250 million and made Bitcoin its primary treasury reserve asset.

While it is typical that companies put their surplus cash and capital into bonds and other investments, U.S. Software firm, MicroStrategy had become the first company to bet on Bitcoin for such a significant transaction. The company believes that investing in the cryptocurrency would provide a reasonable hedge against inflation and earn a higher return than other investments.

Infosys had $4.5 billion worth consolidated capital and investments on its books. Future of Bitcoin and other cryptocurrency is uncertain. Recently, Indian Finance Minister, Nirmala Sitharaman, said that a government nominated committee will study and launch a new crypto bill for India.

Parekh also added that we had reviewed some critics claiming to mine the cryptocurrency is very energy-consuming as it needs enormous computing and processing power and conflict Infosys’s ESG (environmental, social, governance) approach.

Bitcoin is in the news since last few weeks. According to data from CoinDesk, Bitcoin hit a record high of $48,297 on 11th February 2021 at 8 AM ET time. It is mainly because many trustable brands such as BNY Mellon, Mastercard and Tesla have supported cryptocurrencies. Bitcoin is up more than 60% since the start of the year after folding in 4X times value in 2020.