In a recent article published in a top economic news daily on 19th May sources at the Finance Ministry confirmed that the Government wants to regulate cryptocurrencies and take a calibrated approach in the best interest of investors and the ecosystem. This comes like a relief to some extent in Indian Crypto Ecosystem where investors are worried about the future. In this Context the company had a chat with Some experts focused on blockchain and crypto assets reassuring the community that Cryptos are here to stay and how it will create a transparent, trusted, compliant and sustainable economy going forward.
The COVID-19 pandemic and ensuing lockdowns have put lives, businesses, and the economy in general, into a downward spiral. India's GDP is relied upon to have shrunk by almost shrunk significantly in this last one year. During these times, the government along with financial institutions have made intrepid efforts to stabilize the livelihoods of millions.
Notwithstanding these endeavors, there are yet enormous gaps in execution of various welfare schemes, implying that many are still being left out from relief opportunities. RBI sources demonstrate that credit lending to MSMEs — enterprises that need maximum liquidity — has shrunk by 7.6 percent this year. It has proven to be a complicated situation and only effective partnerships, synergies, and communication between the public, the private sector, and the government will ensure complete economic recovery. India’s GDP target by 2024 is Five Trillion USD. For the country to achieve this number, the company will have to incorporate unprecedented technology or systems.
With the Supreme Court lifting the ban on cryptocurrency, it seems like Crypto Currencies might be a solution to a lot of problems. Let us quickly see how it can add value to the economy.
“Cryptos are Best way to Hedge against global inflation”: With governments printing more money, reducing interest rates and interest rate going negative there is free money flow into the system which is causing global inflation to reach all time high world really needs an asset which is really rare, exchanged easily and globally hence Bitcoins could be one of the best ways to do that. Mining Bitcoins is like mining gold on the internet.
It's just that it's more difficult and there is a really high cost of production since mining bitcoins is not like any other asset which is created out of debt. The last bitcoin will be mined in 2140 and there is no possible way one can extract all bitcoins at once unlike gold ( where miners & mediators like bank/traders/central bodies decide /control the value and supply of assets like gold, oil etc). Bitcoins to lot of extents are community driven, with more miners and people wanting to mine bitcoin more its value, scarcity increases a perfect required fundamental to be called as store of value says Rahul Agarwal, Co-founder of a leading Digital Assets Platform Coinsbit India.
“Cryptos and Blockchain provide access to Universal Financial Infrastructure”: Today, let's look at places like Africa, Venezuela, Palestine, Zimbabwe and several other Countries Inflations everyday touch ATH practically destroying lives of several million people just because of lack of proper governance. To them, bitcoins and any cryptos are just saviour since they can get access to pool of global currencies since cryptos are traded and can be cashed out 24*7*365 days in any major currency like USD, GBP, EUR and tens of currencies easily.
Today, in developed economies like the USA, UK, EU, Singapore, Japan, etc there are crypto debit cards and several merchants accept cryptos. Even for banks for example, in money /forex markets when they remit money rely on several intermediaries in getting quotes to hedge the risk arising out of fluctuations and people know that there are several scams with billions of dollars happening and still happening where best of the financial institutions are involved.
The global daily trading volume of cryptos, perhaps liquidity globally, stands around $250B which is bigger than Indian Stock Exchange and several other exchanges combined together. Recently, in a latest dip in the market Elon Musk commented “Tesla bought Bitcoins to prove the liquidity of the crypto market” he is an avid supporter of cryptos and like everyone else still exploring space. Today with Cryptos, DeFi ( Decentralised Finance) anyone having as low as $10 can invest globally and can earn universal returns in a global market without any discrimination on basis of net worth. Blockchain, Smart Contracts and algo’s treat everyone equally, in a trusted, transparent and secured way adds Prashant Surana Jain Co-founder Snapper Future Tech, He also clarified that the volatility and speculation exists because certain influencers/decision makers try to drive sentiments/judgements about this market. Give it a free hand and then see wonders it can do.
The company has seen ideas getting access to global capital through means of Coin offering resulting in Projects like Matic Polygon being born out of India and is now a fastest growing multi billion dollar crypto asset solving deep tech problems. Entrepreneurs with great ideas and spirit to do something awesome can now get access to universal global capital without any barriers and this could be proved with success stories of so many startups and communities raising capital through coin offering.
“Regulating Cryptos could provide new revenue/taxation streams to the government and create new job opportunities”: Sidharth Sogani, CEO CREBACO Global, a research and intelligence company focused on blockchain and crypto factually expresses that"Bitcoin is solving a great problem and has been operating for a decade now. The global growth of the crypto industry is surprisingly amazing, the Coinbase IPO which was valued at around 100Billion proves it. Crypto has over 65Lakh users in India with about 15 thousand crores or worth of assets in holding, and growing everyday.
The industry can generate employment to at least 25000 young professionals if regulated, and can invite billions of dollars as FDI. The industry can generate a considerable amount of direct and indirect taxes as well." According to Tatva Legal, Hyderabad, "The government of India has been very enthusiastic about the application of blockchain in the day-to-day administration of the country. The only exception is cryptocurrency.
The government has been reluctant to regulate it due to its partial understanding of what cryptocurrency exactly is. It will not replace the Indian rupee but will only supplement it. India shall consider its benefits like accessibility, micro-payments and should consider not being left out by its global competitors like the US and Europe in the blockchain-enabled cyberspace. Bottomline is the earlier India regulates it, the earlier the country benefits."
