#Budget2018crypto is trending.Not because the honorable FM loves it(in fact the opposite)it’s trending for an entirely different reason.
A disclaimer is needed at the very beginning.I am not a financial analyst, economist, banker or anyone with qualifications in banking.I am not advocating any financial product or cryptocurrency.This post is an opinion piece and is not be taken as advice under any circumstances.
I got that over with now onto the fun part.
Facebook updated advertising terms said it is barring ads for “financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, and cryptocurrency”.
But I am a citizen of a country which underwent demonetization 14 months back.Then the entire nation was asked to use digital currency and avoid cash.This was a way of ensuring transparency.
Fast forward to 2018 Feb: We are told once again that bitcoins and all other cryptocurrency are not recognized as legal tenders (that makes it illegal right?).
My answer: it’s still complicated.
The Government is ready to explore the opportunities underlying the technology.That’s Blockchain!
We like Bitcoin’s mom, but not the baby!
The government also wants to make sure wi-fi in villages make AI and technology learning tools.I love this face of our Government.We want to progress, empower and be inclusive, but keep in mind that too much too soon and with the wrong people can cause a financial condition like AIDS.
In a country like India literacy and education have two different meanings. We need ways of ensuring legalities, KYC checking, source identification and complete transparency(still shaky grounds).Till then black market and terror funding will be the fallout of this amazing, groundbreaking and exciting technology.
Our Honourable finance minister Mr.Arun Jaitley has a way with words.He says things which make perfect sense with layers of underlying meaning.
I like the Budget2018.It shows socialist India.The inclusive nature that we want to preserve..The feeling of helping people stand up when they are down.That’s why the National Health Protection scheme can be a game changer.
Now the mystery of cryptocurrency, the blockchain, bitcoin, is almost like the Da Vinci code.It makes some sense and some parts do not.
Whats interesting is Honorable FM Mr. Jaitley did two very clear things.Read slowly what he said:
The government does not consider cryptocurrencies as legal tender or coin and (will) take all measures to eliminate the use crypto assets.There is legitimate concern that cryptocurrencies are being used for illegal activities – money laundering, black money and, even worse, to fund drugs and terrorism.
He reaffirmed the Government and RBI’s stand on cryptocurrency Then the FM said something which made me sit up
…it will explore Blockchain, to add muscle to the digital economy”.
That’s pretty cool, right?Japan, UK, Mauritius, Japan, Canada, Estonia, Dubai are exploring a way to block chaining their way to governance.There are crores of leakage every year from allocated assets in sectors like medical benefits Educational allotments
Land-related records and transactions, food chains and practically all sections of the Government.
With planning each of these leaks can be plugged and made transparent using blockchain.
The Government frowns heavily on cash to crypto transactions and has already sent tax notices to people dealing that way.
Cryptocurrency can make traditional middlemen/institutions less important.But will it make them redundant?I don’t think so.At least not now and definitely not in India.With a large percentage of the population lacking the necessary education and awareness to make informed choices, we need to be wary.
Just like the ebooks, will not wipe out physical books.We love them both.Just like YouTube did not wipe out TV, cryptocurrency is not going to make all other currency redundant.What it has the potential to do?
Streamline, decentralize, avoid leaks and make every transaction with a value more transparent.Really ?
So should we be excited?
Yes!
Should we be cautious?
Definitely and for a variety of reasons.
If you are not married treat it like your new girlfriend/boyfriend.Get to know before proposing marriage.
If you are married, treat it like your inlaws.Better to be at an arm’s length before you know them well.You get my drift right?
According to Harvard Business Review Blockchain is a foundational technology.It can set up new economic and social systems for a better future.But before that many barriers need to be broken including technological, organizational, government and societal.It is s slow steady change and not a sudden storm which leads to nothing.
We need checks, balances and a better understanding of the blockchain mechanism before we dive headfirst.Let’s learn to swim.Check whether we can tread water.Check how deep the pool is.Are we swimming with sharks?Or that’s just our imagination?
Only time will tell.
Till then read more, learn more and subscribe to my blog to be updated for the #Budget2018Crypto reveal!
Have an opinion about blockchain, cryptocurrency, and #Budget2018, #Budget2018crypto and #cybersecurity?
References :
Check out this cool video , but don’t get too excited!
What is Blockchain?
The truth about Blockchain: Harvard Business Review
Budget 2018: Arun Jaitley outlaws cryptocurrency
That’s an interesting take on the budget! I agree that being open about new ideas and trying to incorporate them will help us stay in-tune with world views and maybe even push for better and transparent reforms.
Thanks Neha