CRYPTO - CURRENCY AND ISSUES

 

CRYPTO-CURRENCY AND ISSUES RELATED TO IT

“The future of money is digital currency” – Bill Gates.

In modern economy, we have real money in paper and coins form and also the money in electronic wallet, debit & credit card etc. which are controlled by the Central or Common Authority. Crypto currency is a similar concept for digital currency but in a decentralized manner i.e., no server is involved for proceeding transactions and no Central authority to govern.

Crypto -  currency is digital currency in which encryption technique are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. It is mainly work on principle of “cryptography”. The prefix “crypt” mean ‘hidden’ or ‘vault’ and the suffix “graph” stands for ‘writing’. There are two major types of such currency ‘Bitcoin’ & ‘Altcoin’

	Bitcoin	Altcoin
	Found in 2009 A decentralized 1st crypto (Digital) currency using the alias ‘Satoshi Nakamoto’.	These are also crypto other than Bitcoin i.e. Bitcoin blockchain derived crypto-currency : Bitcoin network was copied, forked and updated to make better crypto-currencies, like, Litecoin, Dogecoin, Bitcoin cash, Dash. Native blockchain derived: Many crypto currencies have their Blockchain like Ether, XPR.
Purpose	Store of value, send money over internet, operates free from central control, make transaction across globe cheaper & faster, combat inflation.
Feature	Limited in supply, decentralization, Transparency, value determined by demand.

 

Cryptocurrencies in India

In 2018, RBI issued a circular preventing all banks from dealing in Cryptocurrencies. This circular was declared unconstitutional by Supreme court in landmark case of Internet and mobile association of India Vs RBI, Writ petition (civil) No. 528 of 2018 (with 3 judge bench). The court predominantly examined the matter from perspective of Article 19(1) (g) of Indian Constitution, specifically on “ground of proportionality”.

Recently the government has introduced bill called “Crypto currency and Regulation of Official Currency Bill, 2021” to create sovereign Digital currency and simultaneously ban all private Cryptocurrencies.

Why RBI against the use of Cryptocurrencies?

( A ) Sovereign Guarantee : It poses risk to consumers. They don’t have sovereign guarantee & hence are not legal tender.

( B ) Market Volatility : Their speculative nature make them high volatile.

( c ) Risk in security : A user losses access to their cryptocurrency  if  they lose their private key.

( d ) Malware threat : In some cases, these keys are stored by technical service providers ( Cryptocurrencies exchange or wallets) which are prone to malware or hacking.

( e ) Money laundering

Issues Associated with Banning  Cryptocurrencies

1. Blanket ban – Categorizing it as public or private is inaccessible as these are decentralized not private. Bitcoin can’t controlled by any entity private or public.

2. Brain-Drain – Ban result in an exodus of both talent and business from India. (e.g. –Experts moved to Singapore, Switzerland, Estonia & U.S., where crypto regulated)

3. Deprivation of trans-formative Technology – It will deprive India its entrepreneurs & citizen of trans-formative technology that is being rapidly adopted across the world like Tesla & MasterCard.

4. Contradictory Policy – Banning is inconsistent with draft National Strategy on blockchain, 2021 of The Ministry of Electronic & IT (MEITY), which hailed blockchain technology as transparent, secure & efficient.

Way Forward

1. Clarity on cryptocurrency definition :- A legal and regulatory framework must define it as securities or other financial instruments under relevant national law & regulatory authority in charge (identification).

2. Strong KYC Norms :- Instead of Ban, regulate trade of currencies by including stringent KYC, reporting & taxbility.

3. Ensuring transparency :- Record Keeping, inspection, Independent audits, investor grievance redressal & dispute resolution may also be considered.

4. Igniting entrepreneurial wave : -  It can reignite entrepreneurial wave in India’s startup eco-system & create job opportunities from blockchain developer to designer, project manager, business analyst, promoters and marketers.

Conclusion : India is currently on the cusp of the next phase of digital revolution & it is believed that by 2030,Cryptocurrencies would occupy 25% of national currencies and India has the potential to channel its human capital, expertise and resources into this revolution. All that needed to do is to get the policy making right.

          

Human Tendency On Social Media

Human Tendency On Social Media

Today's judgementals and interpreters persons in this world have a powerful tool of social media which bears various features to attract the users. Status and post are core packaging feature of social media.

The status or post...become quit easy task due to technology boon that human can present himself in his own platform. About 46% means, 3.5 billion or more of the population are spending 136 minutes an average time of a day on network which makes it a vital part of discussion in their routine life too. Consequently, more or less part of conversation involves episodes from their statuses or post. Its quite good gesture towards the link between virtual and real relation.

Humen becoming sensitive after the injection of status on sites or apps as passing stile steps of clock. Status building the traits of prediction, emulation, reaction, demonstration etc.

Someway, having no status or short term activity on social media make relations feeble or unresponsive with their linked people. Statuses or posts effects to the user by posted pictures, events, sentiments, modernity, prosperity of other's life. Others may do so for their mirth in while, but behind the curtail the story is different. Its not possible to live same for humen in this era because of being in nature of adaptiveness. We change as the technology changes.

Trending tendancy that,"electronic respect" are happening more valuable for user than "in- house respect" for each other. It can be seen through yourself, How?
Let's take glance : -

o By counting likes with filtering.
o Kind of reaction receive on post and cross comments.
o Believing on shared tiding elements without intellect of sources, and
o Last, but not the least, by comparing the post from others, forming analytical report and self-absorption into the mind or epitome etc.

Its now becoming responsibility of the user to give time to other status either a second or into depth which provides a Tag of "active friendship". It may differ thought but soon its turned into buzz.

So, Whats your status? This is Nothing more then that, about your digital and customised social respect and attitude. Person follows sharing and caring concept on social sites. We are also updated through these information exchange sites.

Status are require to maintain like a fuel of vehicle, average of its depends upon speed of time. You are giving stuff of your life's part with those people whom you never meet routinely. After that it makes big sense by saying that we are in "touch". It makes you social person who have decent quality of "digital courtesy".

The electronic respect become more important today. It gives name "follower" to the powerful word "friends and relatives" sometime in artificial sense.
But overall, its only your status or post which make people closer not in real but for at least making remembrances in the memory of others.

Interesting Facts : -

1. India was ranked second with 73 million Instagram users, ahead of Brazil with an audience of 72 million users. (OCT,2019)
2. That amounts to 69.9% of indian population social network users in the country and 42.6% of Internet users. That is expected to increase to 70.1% by 2021.

Source : -
• Data related social media respect.
• Most Instagram user.

These facts are limitless on differ parameters with differ users on various network.