Way Forward on Cryptocurrencies

Trump has given stability to crypto with GENIUS Act. For India it depends on use-case using crypto as legal tender. "Crypto gets stability with a GENIUS Act" By Monika Halan "The use-case is international remittances and a store of value for those living in countries in distress Last month, I met two Lebanese women at a conference overseas. They were accompanying their businessmen husbands. We got talking and I found that they keep their money mostly abroad or in dollars and euros in cash at home. In 2019, the Lebanese govern-ment froze bank accounts, effectively locking over $93 billion of citizens' money and making it inaccessible. Therefore, when I read that the US has given stablecoins a formal legal hackbone, it seemed that a giant step has been taken in legitimising a par ticular form of crypto currencies that finally have a use case, especially for people in countries with unstable gov ernments and those with hyper-infla tion. Let's get the basics out of the way first. A cryptocurrency is a specific type of digital token that is designed to function as a medium of exchange or store of value using blockchain to record transactions. Bitcoin is the most well-known example. Cryptocurrencies have two major problems. One, there is no underlying asset. Remember that a flat currency has the promise of the government to honour the value as an underlying asset. Stocks have businesses and bonds have a loan contract as under lying assets with a value. But crypto currencies have no asset or promise that gives them value. Two, there are no rules of the game as these have been outside the regulatory gaze. This has encouraged all kinds of frauds to perpetuate. Over half the cryptocurrencies have failed since 2021, with billions of dollars lost by people gam bling on a quick return." "What does it mean for you and me? At the moment-nothing. India is not a country that is at risk of hyper-infla tion. Nor will private assets be frozen unless there is a drastic change in the political viewpoint where private assets are at risk of being shared for a more "equal" country. Our use case for stablecoins will be purely cheaper and faster remittances and not as a distress store of value. And even then, the use-case is only after a trusted name has proven its track record over time. I would not rush into using it just yet. Should you invest in these stablecoins? Unless you invest today in the foreign exchange markets, there is no justification to do so in a stablecoin. We need to understand that the global financial system is changing. As tiny retail users, we should wait for the rules of the game to settle down before we enter this digital financial superhighway." Monika Holan is the best-selling author of the Let's Talk series of books on money. The views are personal. more  

Again white money is store in foreign countries....!! more  

If you can investigate the trail of crypto currency then you should allow it. If it is not possible to track it should not be allowed. Allowing crypto is like allowing Dawood to print ₹2000 notes and allow it in circulation in India. Only thing is that people in power are deeply involved in this racket and so they are delaying the decision to classify it is a currency or as commodity and pass time and get out it and common man get into and bear the brunt. Govt also doesnot want gold as a medium exchange then how it can allow such BASTARD CURRENCY .... where you cannot make out who is the owner of it. You password and id is lost you are screwed. If you loose the pen drive your money is lost. If some ransomware or hacker hacks your account you have no recourse to track it or claim your amount back. I can see people weeping on investing in such currencies in coming future. more  

We all pretty know that there are at least a dozen of countries or rather economies which are called or described as tax haven countries.Bitcoins or cryptocurrencies are tax haven financial investments instruments.There are many wealthy persons across the world who have Swiss bank accounts where they can put their ill gotten wealth safely.But this wealth cannot be used as money in circulation.Bitcoins are nothing but a means to utilize this ill gotten wealth as money.But so long it remains a trusted means for transactions in a limited closed circle among its participants it will not matter much.But once it gets operational in a wide circle then it will be a matter of grave concern. It definitely has a tremendous potential to purchase the entire economy of poorer countries.But unfortunately the big players in this market are from big economies and they are trying their best to pressurize the big economies to legitimize bitcoins.Financial discipline at the apex level should never bow down to these pressures or else there can be havoc in international financial world more  

It ia way for easy transfer of funds across nations. Of course, there is also an element of gambling for gain or loss of invested funds more