State Backed Centralised Digital Currency Is Not What India Needs Right Now!
A day ago I wrote that the government of India is considering its own digital currency. RBI has constituted a committee towards this effect but this is not something to be very pleased about.
Indian government is considering the possibility of digital currencies to cut it's 6,36,79,50,000.00 INR spending on currency notes. This is a significant cost that can be saved indeed but how will you achieve it with a centralised digital token economy?
Andreas M. Antonopoulos said this and I concur:
This is incredibly dangerous: Centralised digital cash, backed by centralised identity, in a country that has demonstrated dangerous authoritarianism when it comes to currency. $1.3bn people under totalitarian financial control = democracy dies.
It's a dangerous move which will further subjugate citizens of this country. We all know now that demonetisation of 500 and 1000 rupee notes has been a total failure with RBI receiving back over 99% of the old notes. Legalisation and adoption of decentralised tokens is what we need moving forward.
The government machinery will work wonderfully well with the crooks in the system finding a way to benefit out of this. However, the common man especially people in rural areas, how can they even function on digital currency when they have no access and knowledge of digital payments...
The concept of centralised money is evolving now and there are other solutions that needs to be considered. In the world of Bitcoin and decentralised tokens, we are the owners of our tokens and no one can snatch it from us overnight.
Demonetisation has affected our economy negatively. It's foolish for the government to even consider moving to a centralised digital token.
What are your views on the RBI considering creating a digital token of it's own?
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Don't know why every time our govt have been taking such decisions,which become totally fail.You are absolutely right dear,in rural area people will be completely unable to make a digital payment due to ignorance and illiteracy.The govt system never visit villages unless there is election.So the decision of digital economy will definitely turn in different mood.Thanks for updates,wish you a very good time
Maybe not instantly or overnight(haha like the demonetisation) but maybe can be done over a period of time.
Its never was a very exciting news to hear that government was happy about blockchain. It wasn't the fact that they were hoping to using DLT in their planning....... what I found dangerous was when the finance minister (could have been somebody else) said that they love blockchain but hate crypto.
All I could read in it was the fact that they hate the idea of decentralized tokenization. While they are perfectly happy to do it if they can have a centralized version if it.
I have only one question that how would those people who are not digital will settle down with it "Indian government is considering the possibility of digital currencies to cut it's 6,36,79,50,000.00 INR spending on currency notes."
They should also help people understand digitalisation by making them aware about it.
Anyhow RBI have to adopt cryptocurrency because there are lots of disadvantages with Fiat currency. One of the biggest drawback is manufacturing cost.
Indian government spending more than one rupee to manufacture RS. 1 coin. It also revels in media that some people collecting coins and melt it to make machine part. It is even cheaper than to buy raw material.
Let's see what's there in store for us if RBI is really serious about this. Expecting decentralisation from a government is out of the question as our government body has a well structured framework and thus limitations in delivering real freedom to its citizens.
However, I support the move of RBI while also acknowledging its drawbacks very well.