Way back in Dec 24, 2013 the RBI had issued a Press release on Bitcoin and other such virtual currencies (VCs) which were slowly creeping into the Indian unregulated financial market and into the psyche of the Indian minds. It was clandestine, hassle free, anonymous (till redemption) and limited in supply ensuring value.
The RBI notification https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30247 fell short of saying that the transactions in VCs were illegal. It warned of the risks associated and heralded a wait and watch appproach. The reason for such an approach would probably be the mixed bag of approaches by various countries in dealing with such currencies. The US has went ahead and recognised this mode and even the IRS is keen to levy Capital gains on it. Certain others like China have it tied up in regulation but not declared it illegal(which is applicable very much for everything in China).
Now that the long suspected suitor Australian tech entrepreneur Craig Wright has stepped up to Marry the Bride called bit coin, It is time to analyse whether the time is ripe either to Ban or bring in the Virtual Currency Bandwagon.
In a country like India where anything and everything can be held using a Benami, the Bit coin will become the Black Money holder's first ally. To avoid this the authorities to issue a trail of VC that can be tracked. But this will hit at the main attraction of the Bit coin - Anonymity.
Then will come the limited supply factor. with 198000 millionaires and a burgeoning middle class that's not averse to risk taking, Limited supply will push the Bit coin price through the roof and will become another options or futures market, purely speculative and far away from practicality or reality. thus the second feature might also be unsuitable for us Indians.
Stripped of both its advantages, the Indian bit coin or rather Rupay coin should ideally be controlled, traceable, secure and linked with our currency system but yet give the common man a taste of ease of transaction and low transaction costs. It should be in the form of a poor mans ATM card which links his bank account and aadhar card but allows him to conveniently save his wealth in the form of tradeable bit coins at times of plenty for the rainy day.
A simple paperless saving and withdrawal system based on biometrics and intuitive Graphic interface rather than the maze of complex passwords with five characters one numeral and some special characters (confusing enough for a PHD leave alone a farmer)
Universal access to simple and effective banking in whatever form possible will be one great boon to the masses. this linked with reduced cash transactions will go a long way in bringing down corruption.
Let's think a bit about the new bit coin , sorry Rupay coin.
The RBI notification https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30247 fell short of saying that the transactions in VCs were illegal. It warned of the risks associated and heralded a wait and watch appproach. The reason for such an approach would probably be the mixed bag of approaches by various countries in dealing with such currencies. The US has went ahead and recognised this mode and even the IRS is keen to levy Capital gains on it. Certain others like China have it tied up in regulation but not declared it illegal(which is applicable very much for everything in China).
Now that the long suspected suitor Australian tech entrepreneur Craig Wright has stepped up to Marry the Bride called bit coin, It is time to analyse whether the time is ripe either to Ban or bring in the Virtual Currency Bandwagon.
In a country like India where anything and everything can be held using a Benami, the Bit coin will become the Black Money holder's first ally. To avoid this the authorities to issue a trail of VC that can be tracked. But this will hit at the main attraction of the Bit coin - Anonymity.
Then will come the limited supply factor. with 198000 millionaires and a burgeoning middle class that's not averse to risk taking, Limited supply will push the Bit coin price through the roof and will become another options or futures market, purely speculative and far away from practicality or reality. thus the second feature might also be unsuitable for us Indians.
Stripped of both its advantages, the Indian bit coin or rather Rupay coin should ideally be controlled, traceable, secure and linked with our currency system but yet give the common man a taste of ease of transaction and low transaction costs. It should be in the form of a poor mans ATM card which links his bank account and aadhar card but allows him to conveniently save his wealth in the form of tradeable bit coins at times of plenty for the rainy day.
A simple paperless saving and withdrawal system based on biometrics and intuitive Graphic interface rather than the maze of complex passwords with five characters one numeral and some special characters (confusing enough for a PHD leave alone a farmer)
Universal access to simple and effective banking in whatever form possible will be one great boon to the masses. this linked with reduced cash transactions will go a long way in bringing down corruption.
Let's think a bit about the new bit coin , sorry Rupay coin.
👏. I found the blog informative and enjoyed the quips also.
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