For What ?
For considering my
suggestion to introduce IndiaBit (
my favorite name ) – a RBI backed crypto-currency
What
makes you think your suggestion is under consideration ?
Following news
report :
No
plan to recognize Bitcoin as currency , says FM /
Business Line / 30 Nov
2021
Extract :
The government has no plan to recognise
Bitcoin as a currency in the country, Finance Minister Nirmala Sitharaman
informed the Lok Sabha on Monday.
In response to another question, the Finance Ministry said the
Reserve Bank of India has urged the Centre to amend the RBI Act, 1934 to widen
the definition of bank notes to include
digital currency. This will facilitate the introduction of the Central Bank
of Digital Currency (CBDC).
Asked “whether the Government has any
proposal to recognise Bitcoin as a currency in the country,” Sitharaman said in
written response, “No Sir.” This response comes at a time when the government
is planning a Bill to regulate cryptos in India.
On the CBDC, Minister of State for Finance Pankaj
Chaudhury, in a written reply, said: “The government has received a
proposal from Reserve Bank of India in October, 2021 for amendment to the
Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘ bank note ’ to include currency in digital form.”
It is believed that the RBI’s request will be incorporated in ‘ The
Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’,
scheduled for the Winter Session.
Chaudhury said the RBI has been examining use-cases and working
on a phased implementation of the CBDC with
little or no disruption.
“Introduction of CBDC has the potential to provide significant
benefits, such as,
# reduced dependency on cash,
#
higher seigniorage due to lower transaction costs,
# reduced settlement risk
It could also lead to a more robust, efficient, trusted, regulated and legal
tender-based payments
option,” he said while admitting that there are also associated risks that need
to be evaluated.
The RBI has indicated doing a pilot of the CBDC in the first
quarter of FY23. With the RBI considering it for retail and international trade payments, the CBDC could have a
larger impact on the financial ecosystem, say experts.
While many see CBDCs as a legalised replacement of crypto-currencies,
in reality, the CBDC could just be a digital
replica of the physical cash in circulation.
===================================================
What
exactly did you suggest ? – and when ?
I sent following
e-mail to our Cabinet Ministers :
Crypto
: Corruption : Corona : China ………………………..[ 17 June 2020 ]
-
Where , I
wrote :
Dear Smt Nirmala Sitharamanji / Shri
RaviShankar Prasadji / Shri Piyush Goyalji,
I have no clue as to what mechanism could be used (
Inter-Currency Exchange Rate ) for payment for Imports and remittances for
Exports , if – and when – we introduce IndiaBit
But if IndiaBit can ,
# To begin with bring out all BLACK MONEY ( stashed away
as paper currency notes )
and deploy the same into
mainstream economy for productive purposes , and
# Put a Full Stop to any future generation of Black Money ,
- then my
proposal deserves a debate
What will convince RBI / Government to issue OFFICIAL VIRTUAL CURRENCY ?
Ø While
banning Private Crypto, introduce IndiaBit ( Govt Virtual
Currency )
Ø With
some effective date, withdraw all Paper Currency ( forget coins )
Ø Minimum
denomination will still be called a RUPEE (
easy to convert from paper to digital )
Ø As of a given date, bank
balances in everyone’s bank account gets converted to IndiaBits
Ø Set time
limit within which people can deposit their paper currency into banks for
instant conversion
into IndiaBits
Ø After set date, paper
currencies held by anyone ( individual or any legal entity such as a
Company ),
loses all value and become
illegal for any sell / purchase transaction
Ø All
future financial transactions ( sell / buy of any goods or services ) can only
be through mobile-app
based DIGITAL transactions
Ø Since all
transactions will become DIGITAL, Govt would have full /
life-time LOG of each citizen’s “
Sale
or Purchase “ [ Who bought What , When ,
from Whom , at What price , Where etc ] .
===================================================
Dear Smt Sitharamanji,
A word of caution :
Implementation of my suggestion ( described above ), is bound to meet
with strong resistance / opposition from persons holding BLACK MONEY ( stashed
paper currency in Rs 2,000 notes )
Expect opposition to quote the “ failure “ of De-Monetization to get rid
of Black Money
They will strongly oppose total replacement of paper currency, citing
enormous inconvenience / hardship this will cause the poor people . I agree
with them
Please enable a JPC ( headed by Opposition Member ? ) to draft the
Crypto Bill, with full unanimity
I agree that the objective should be limited to : “ Reduced
dependency on cash “
And not : “ Replacement of
Cash “
May be, 5 years after introduction of IndiaBit,
this ( larger ) objective would find acceptance
With regards,
Hemen Parekh / hcp@RecruitGuru.com
/ 30 Nov 2021
Related Readings :
In the Eyes of the Beholder ?
………………………………………[ 06 Aug 2017 ]
Virtual Currency ? Time to get Real …………………………….[
17 Aug 2017 ]
One More Reason ………………………………………………………..[
22 Nov 2017 ]
What is holding back ? ………………………………………………….[
06 Dec 2017 ]
Bursting Bitcoin Bubble ? ……………………………………………….[
10 Dec 2017 ]
Bitcoin : Illegal in India …………………………………………………[
02 Jan 2018 ]
LIBRA : The coming battle of Currencies ? …………………[
29 June 2019 ]
LIBRA : Am I the only one worried ? …………………………..[
05 July 2019 ]
Who is afraid of the Big Bad Wolf ( aka LIBRA ) ?........
[ 07 July 2019 ]
Latest word on LIBRA : though not the last word………….[
10 July 2019]
Will China Reign Supreme ? …………………………………………..[
15 Oct 2019 ]
Elephant Bonds vs Dragon Bonds …………………………………….[
04 Nov 2019 ]
India’s Draft National Strategy On Blockchain Calls
For Official Cryptocurrency[28/01/2020
]
Time to Un-Block the Blockchain Technology …………………..[
30 Jan 2020 ]