Cryptocurrency

Why in the first place does the government want to ban cryptocurrencies or what's the cause and why is it vitally being called as a scam.

Points :

First and foremost, because the government probably doesn't understand what it is dealing with. But in order to not sound arrogant about this i would i would lay out what you know what was led government's concerns or concerns are legitimate by the way the government is not wrong in saying that well yes, there is a fear that your use of cryptocurrencies will essentially, reduce the control that the government has over its money. That will not be able to control the if people are moving currency out from India to say outside today, the RBI controls any movement of money outside, but how will you control it. In the cryptocurrency ecosystem.

On a thing that people could use the cryptocurrencies to evade taxes because you know you can work your money into bitcoin or something else or take it out of the country etc

What if it is used for terrorist financing for example.

So, firstly it's a it's a little bit of a misunderstanding. to say that we all love feeling cryptocurrency with, with excurrent application as a currency, because the equivalent of saying, back in the 90s. When internet was just about sending emails, is the equivalent of saying that internet is email. Right. But it's like, there are hundreds and 1000s of applications that are built on top of internet, which have changed our lives forever. Right, and WhatsApp or Amazon or Facebook or whatever else right. Each cryptocurrency and there are about 1500 of them out there are different things. There was different applications of the technology. Right. It is not just currency, it's not payments. It is health, health records. Anywhere where you need to store information in a safe secure manner. Right. And that is, but possibly everything that we do. So whether it is language cards or your health records, or just, you know, transacting money or whether it is you know transacting information sending you secured messages, whatever it could be anything right, which could be. So you just provide, so I think of not feeling blockchain as the underlying technology the internet, on which cryptocurrencies are these various kinds of innovative applications that are being built. Now the fundamental thing is to understand is that if the government were to say that we will we will allow blockchain, but not cryptocurrency you're essentially saying if we allow the internet, but hey, I mean, sorry. Well, the whole point of this foundational technology is that you can build on top of it. Right. I know I'm going to allow private people to build on top of it knocks out the government is not in the business of technology and innovation. So that is one thing the other other other kind of key disconnect is that you can't really have blockchain without cryptocurrency. Okay. Because it really is the underlying, these are these are very intricately linked concepts as such. And, I mean, why are you I want to resist going into why that is the case there is some technical complexity which I could probably find explained but but maybe we are wired in a way for the benefit of the audience here.

The one thing I really want to drive home here is that cryptocurrencies are not really currencies, it's a misnomer. It's a misunderstanding. Yes. Bitcoin was the first application that really became popular that popularised the concept of blockchain in the first place. And so today everybody equates Bitcoin Bitcoin also multiple applications but it's used as a currency, with all the potential that that cryptocurrencies have to offer. And that's not fair, that's that's that's that's a misunderstanding.

So you're having these vaccination drives are right and you have these micro vaccines. And this is critical vaccine right so you want to be sure that the vaccine that I'm getting today is has is is is has been manufactured by a particular company that it has been tested in a certain way, but it has been stored in a certain way in a certain temperature. throughout its journey to me to reach me. Now, how do I know that that's the case. Now, ultimately, there is some somebody who's keeping a record, right, of, of where this was manufactured and what time was shipped How was the ship, which truck took it. You know how it descale etc etc all the way till it was finally opened in the clinic when it was delivered to me. Every each of these things are recorded but how do I know that was recorded accurate it's not tampered with. Right. So, what blockchain allows you to do is essentially store and transfer information in a, in an immutable data can't be tampered with. Right, you can trust the information that you access. Now, this is nothing but if you want to build an application. To achieve this, essentially what you're doing is you're building you're building I mean, you know that i would i would create cryptocurrency based application to essentially enable all of this. Right. And that is that, that to me is a very relevant kind of example for for today's times.

Let's see an example of Switzerland to begin with one of the first countries to come up with really really strong regulation in fact there is, there is a desk, a place called the krypto Valley, much like Silicon Valley in the US, which is very popular. And because of that reason a very expensive destination to set up a crypto business. Then Singapore is has been very smart and Dubai has been very smart with its regulation and attracting a lot of investment including from Indian companies who have begun to already move because you know there's too much uncertainty in the country. There are stakes in the US, Wyoming being a leader in that sense, because, you know, that that has positive political regulations. A lot of European countries, Estonia was very very early in regulating providing for licencing. We have a list of 20 plus countries that have some strong regulations, and many other countries that are discussing how to regulate.

Back in the 90s he was to decide that he emails is tricky business because emails can be used by terrorists to communicate without me having oversight over it. Like we build our own email. Right, which the government of India will manage and run. What would you have lost out on you wouldn't have had a Hotmail, then you wouldn't have a new innovation which improves goodwill by replacing it with Gmail, you wouldn't have 10s of email solutions that are available to the world. You would have also not been able to exchange email outside of the jurisdiction. Geography The Indian email because it's cold servers, be interoperable with others. The government is not meant to be building technology. The government is meant to enable govern regulate mitigate risk yes of course, save people from losing money for example, taking these examples, but but but but if, if, if you want to really, you know, kind of III think, I believe, is a good idea actually unexplained itself, it does give you know, because, because this is the future of this is the future of money and I think you should follow it. Follow that schedule or throw including with its own currency, but it's not a substitute it should not only the cost of other innovations that can happen.

Created with Telegraph X Pro