At one time, I was opposed to Crypto-Currencies ( eg : BitCoin ) because of its potential for money
laundering / corruption etc .
That made me write following blogs / emails to
our Cabinet Ministers :
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 ]
Then by early 2019, I learned about Facebook’s plan to dominate the e-Commerce of entire world through launch of its
own / proprietary ( non- Sovereign ) Crypto Currency called LIBRA
That made me write / send following e-mails :
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]
Then came the following news that made me re-think and
consider, the POSITIVE
aspects of a Crypto-Currency
, if it were to be :
Ø Backed and regulated by Government of
India / RBI
Ø The ONLY crypto-currency of India ( no other “ private minting “ by anyone )
Ø Totally replaces CASH [ paper currency notes ] from our
economy ( full digitization ),
Will
China Reign Supreme ? …………………………………………..[
15 Oct 2019 ]
Elephant
Bonds vs Dragon Bonds …………………………………….[ 04 Nov 2019 ]
Then, when I read the following news, I felt elated :
India’s
Draft National Strategy On Blockchain Calls For Official Cryptocurrency[28/01/2020 ]
And sent following email to Cabinet Ministers :
Time
to Un-Block the Blockchain Technology …………………..[ 30 Jan 2020 ]
Then came following depressing news :
With
a law, India plans lasting ban
on cryptos ………………….[ 12 June
2020 ]
Extract :
Ø The panel, headed by
former finance secretary Subhash Garg, had, in its report, advocated a ban on all forms of
private virtual currencies, though it asked the RBI and the government to look at introduction of an official
virtual currency
What
will convince RBI / Government to issue OFFICIAL VIRTUAL CURRENCY ?
Here is a brief ( non-comprehensive ) suggestion for proposed
Law :
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 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 ] .
Ø Here
is why automatic compilation of such CONSUMPTION DATA for
the entire economy, will be a GAME CHANGER :
Economic
data will help policy ………………………………
16 June 2020
Extract :
Ø What were household incomes before the coronavirus pandemic? Were they enough to meet consumption needs? Were rich households
more debt-ridden than their poor counterparts?
Which parts of the country are likely to suffer from interruption of remittances due to reverse migration?
Ø The latest available consumption
expenditure survey dates back to 2011-12.
Ø With no credible official data about the economy, policymakers
will be groping in the dark. This will also prevent an informed public debate.
Ø For example, the Reserve Bank of India could work with banks and
payment companies to provide a geographical map of
remittance flows before the pandemic. Phone
companies should be asked to share information on SIM card movement patterns to give an
estimate of reverse migration.
Making Goods and Services Tax input credit
chains public could give an insight into
value
chain linkages and potential interruptions due to the lockdown. But, to begin
with,
the government should release the National Sample Survey Office’s 2017-
18 Consumption Expenditure Survey, which it had
hastily scrapped last year. This is
literally a click away.
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
With regards,
Hemen Parekh
hcp@RecruitGuru.com / June
18, 2020
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