Wednesday, 2 February 2022

Crypto Rupee : Elephant in the Room ?

Dear Smt Sitharamanji,

A million thanks for announcing in your Budget speech, introduction of CBDC ( Central Bank Digital Currency )

As our PM said yesterday : “….digital rupee will revolutionise the fintech sector.. will also lead to ease in development of global digital payment systems.. “

Of course, learning from the lessons learned from our past attempt at DE-MONETIZATION, it is only natural that you avoided spelling out the LONG TERM STRATEGY right now – and in one fell swoop !

However, those who might have failed to “ Read between the lines “ , may want to continue reading

With regards,

Hemen Parekh / hcp@RcruitGuru.com / 03 Feb 2022

Context :

Investors queue up for cryptos after tax proposal / 03 Feb 2022

Extract :

User sign-ups on crypto platforms jumped 30-50% on finances day Tuesday, when the finance minister introduced a proposal to tax digital property.

While crypto investors and exchanges appeared for the high quality print within the proposal, some seen the announcement as an oblique strategy to endorse crypto trade in India.

In a post-budget press convention, nevertheless, finance minister Nirmala Sitharaman clarified that ,

# “ taxing does not automatically bring legitimacy.”

# It can’t be stated {that a} ban or not of crypto-currency is off the desk, as consultations are nonetheless

on going, she stated.

Overall, it’s a positive move for the industry,” stated Nischal Shetty, chief of WazirX, which noticed a greater than 50% bounce in sign-ups from a day earlier. “The tax clarity is a welcome move,” he stated.

“It is a huge relief to see that our government is adopting the progressive stance of going ahead in the direction of innovation,” stated Shetty of WazirX.

“The negative impact in this case is not immediate as people have some time to respond to it,” stated Sathvik Vishwanath, cofounder of Unocoin.

Those people looking for some clarification, got it directly from PM yesterday when he addressed BJP workers

Digital currency can be exchanged for cash, says PM Narendra Modi / Business Standard / 02 Feb 2022

Extract :

"The digital rupee will be the digital form of our physical rupee and will regulated by the RBI. This will be such a system that will enable exchange of physical currency with digital currency," Modi said at the virtual symposium that was attended by chief ministers of BJP-ruled states and party workers across the country.

"Central Bank Digital Currency (CBDC) will strengthen the digital economy... If anyone makes a payment in digital currency, you will be able to change it to cash," he said.

Modi said the launch of CBDC will make digital payments and online transfer of funds more secure and risk free.

"This will also lead to ease in development of global digital payment systems," he said.

He said the digital rupee will revolutionise the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash.

===================================================

MY TAKE :

At this stage ( pending debate on that Consultation Paper and release of Regulatory Framework by RBI ), there is a lot of confusion. All kinds of experts are voicing all kinds of “ interpretations “ of what might be THE LONG TERM strategy of the government

Could that ( no doubt, VERY long term ) strategy could be as described in my following e-mail ?

Crypto : Corruption : Corona : China……………………… [ 17 June 2020 ]

Extract :

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 ]

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

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

===================================================

PS :

Apropos PM’s clarification, can CASH ( fiat currency ) be changed to “ Digital Rupee “ ?

If someone takes to her bank, Rs 5 LAKH in cash ( Rs 2000 notes ), will bank change it into “ Digital Rupee “ , ( provided credited into her bank account ), by deducting 30 % as transaction TAX ?

If yes, all hoarders of BLACK MONEY ( in cash ), would happily convert into WHITE MONEY by paying 30 % !

A kind of AMNESTY SCHEME ? – even if limited to such “ change / conversion “ taking place before March 2024

A nice way to bring lakhs of crores of hidden / unaccounted / tax-evaded CASH into productive use !

================================================

In Sweden, technology is close to making cash a thing of the past. All aboard with the cash-less society ?

Extract :

From 2010 to 2020 the proportion of Swedes using cash has fallen from 39 to 9 per cent, according to Sweden’s central bank, the Riksbank.

To meet the changing needs of an increasingly cashless society, the Riksbank is piloting a digital currency – the E-krona – a so-called central bank digital currency, or CBDC.

One aim of this pilot project is to protect the Swedish krona against the rise of decentralised cryptocurrencies.

===================================

Added on 10 June 2022 :

Launch of Central Bank Digital Currency within FY23, but gradually: RBI

Better / Faster than interlinking of Rivers ?

Dear Smt Sitharamanji,

Budget 22 lays the “ Reform Foundation “ for the next 25 years of our Economy

In your budget speech, you announced many stones which go to make up this foundation

Among these was : Interlinking of Job Portals

Thanks a lot for taking cognizance of my following past suggestions on this subject

With regards,

Hemen Parekh / hcp@RecruitGuru.com / 03 Feb 2022

Context :

( source : Eco Times / 02 Feb 2022 )

“ Government will link the Udyam, e-Shram , NCS and ASSEM portals and widen their scope

They will now perform as portals with live, organic databases, providing G2C, B2C, and B2B service related to ,

# Credit Facilitation

# Skilling and Recruitment ,

- With an aim to further formalize the economy and enhance entrepreneurial opportunities for all

Budget 2022: DESH-Stack portal for skilling draws praise

Extract :

The announcement to set up a DESH-Stack online skilling platform in the country and the Budget’s overall focus on skilling has drawn appreciation from the industry as stakeholders have been highlighting the widening skill gap in the job market.

Finance Minister Nirmala Sitharaman in her Budget 2022 speech on Tuesday said a Digital Ecosystem for Skilling and Livelihood or DESH-Stack e-portal will be launched to empower citizens to skill, reskill or upskill through on-line training. “It will also provide API-based trusted skill credentials, payment and discovery layers to find relevant jobs and entrepreneurial opportunities,” she said.

“The setting up of a world-class Digital University and the DESH-Stack e-portal for upskilling, reskilling and cross-skilling will place India as a global hub for talent,” said staffing and recruitment firm Randstad India’s MD & CEO PS Viswanath.

“Digital DESH to reskill youth is a good initiative and I hope this will act as a central database of learners signing up for vocational skills, certifications and creates a continuous learning path for each learner,” said Neeti Sharma, co-founder and President of TeamLease Edtech

===============================================================

Knock ! Knock ! - and someone will answer

Here is proof :

( 7 YEARS ago )

National Career Service Portal…………………………….. [ 21 July 2015 ]

Extract :

# COMMON SHARED DATABASE

Today, in India , there are hundreds of job-portals , each having its own database of Jobs and Resumes

And, barring a few big ones, most of these offer FREE service to both, the jobseekers and the employers

Many have only " local clientele " ( both job-seekers and employers )

But a jobseeker who is registered on portal A , can search only those jobs which are posted on that portal

Same with employers searching for resumes

Neither resumes, nor jobs posted on portal B can be accessed by visitors of portal A !

Like a MTNL subscriber not being able to dial anyone other than another MTNL subscriber !

This severely limits their usefulness

NCS should enable ALL such job portals to ,

> Deliver their jobs and resumes , into the CENTRAL DATABASE of NCS

> Deliver / display all of these to any visitor of any participating partner portal

Within a short period , this feature would generate a database of millions of jobs and hundreds of millions of resumes , accessible from a thousand partner job portals

Just imagine the exponential increase of usefulness thru " Network Externality "

( 4 YEARS ago )

No Surprise Here ! ……………………………………..[ 17 Jan 2018 ]

Extract :

This is a step in the right direction

I hope , it will lead to the creation of a SINGLE / CENTRAL database ( of jobseekers' resumes and employers' vacancy announcements ) , which can be freely " accessed " from ANY job portal of India , by anyone , any time

* By Jobseekers ,

# to search online job advts posted by ANY Employer ( Indian or Foreign ), on ANY Indian Job Portal, ANY-

time

# to be able to apply against ANY jobs , directly from mobile or online

# to be able to REGISTER ( Submit Resume ) on ANY Indian Job Portal

* By Employers / Recruitment Agencies,

# to be able to post their Vacancies from ANY of hundreds of Indian Job Portals(after registering)

# to be able to search resumes and download any number , without restriction

# to be able to shortlist candidates and send Interview Calls, directly from ANY Indian Job Portal

# to be able to conduct online Video-Interviews of ANY number of jobseekers from ANY Indian job

portal

( 2 YEARS ago )

Consortium of Indian Job Portals : a First Step………………………. [ 04 Aug 2020 ]

Extract :

What is W3F ?

That is my concept of integrating / aggregating, on one portal , following databases :

Ø Resumes Database of all the Job-seekers of the entire World

Ø Vacancy Database of all the Employers of the entire World

An online software which will match each and every resume ( existing + new getting uploaded everyday ), with every vacancy ( existing + new getting uploaded by employers everyday ) on a daily basis, then sending “Job Alerts “ ( for jobs matched with the mapped skills of each jobseeker) on the smart phones of Jobseekers and enabling them to “ Apply Online “ directly from their phones

You can look up my detailed Conceptual Framework at :

World Wide Work ( W3F ) ……………………………………………………………….[ 17 June 2015 ]

Further, the PM advised extending the scope of the platform to map worker requirements across the globe

Ø “Can we develop this portal to map the global workforce requirement and connect Indian skilled workers to

them, imparting additional skills like language, wherever needed?” he asked.

Government to integrate online Job Portals with Unnati to bring Employers and Jobseekers under one umbrella

Extract :

The government is planning to integrate its multiple job-portals with NITI Aayog’s “ Unnati “ portal to make it a one point source of information on Number , Qualification , Skill sets , and all related information about blue and grey collar workers in the country, including mapping of their progress, a move aimed at bringing both Jobseekers and Job Givers together on a SINGLE MOBILE DIGITAL PLATFORM

This will help Employers find the RIGHT FIT to their requirements, considering that thousands of workers have moved back to their home states

( Last Month ) :