Thank You, Smt Sitharamanji
For What ?
For considering my suggestion to introduce IndiaBit ( my favorite name ) – a RBI backed crypto-currency
What makes you think your suggestion is under consideration ?
Following news report :
No plan to recognize Bitcoin as currency , says FM / Business Line / 30 Nov 2021
Extract :
The government has no plan to recognise Bitcoin as a currency in the country, Finance Minister Nirmala Sitharaman informed the Lok Sabha on Monday.
In response to another question, the Finance Ministry said the Reserve Bank of India has urged the Centre to amend the RBI Act, 1934 to widen the definition of bank notes to include digital currency. This will facilitate the introduction of the Central Bank of Digital Currency (CBDC).
Asked “whether the Government has any proposal to recognise Bitcoin as a currency in the country,” Sitharaman said in written response, “No Sir.” This response comes at a time when the government is planning a Bill to regulate cryptos in India.
On the CBDC, Minister of State for Finance Pankaj Chaudhury, in a written reply, said: “The government has received a proposal from Reserve Bank of India in October, 2021 for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘ bank note ’ to include currency in digital form.”
It is believed that the RBI’s request will be incorporated in ‘ The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’, scheduled for the Winter Session.
Chaudhury said the RBI has been examining use-cases and working on a phased implementation of the CBDC with little or no disruption.
“Introduction of CBDC has the potential to provide significant benefits, such as,
# reduced dependency on cash,
# higher seigniorage due to lower transaction costs,
# reduced settlement risk
It could also lead to a more robust, efficient, trusted, regulated and legal tender-based payments option,” he said while admitting that there are also associated risks that need to be evaluated.
The RBI has indicated doing a pilot of the CBDC in the first quarter of FY23. With the RBI considering it for retail and international trade payments, the CBDC could have a larger impact on the financial ecosystem, say experts.
While many see CBDCs as a legalised replacement of crypto-currencies, in reality, the CBDC could just be a digital replica of the physical cash in circulation.
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What exactly did you suggest ? – and when ?
I sent following e-mail to our Cabinet Ministers :
Crypto : Corruption : Corona : China ………………………..[ 17 June 2020 ]
- Where , I wrote :
Dear Smt Nirmala Sitharamanji / Shri RaviShankar Prasadji / Shri Piyush Goyalji,
I have no clue as to what mechanism could be used ( Inter-Currency Exchange Rate ) for payment for Imports and remittances for Exports , if – and when – we introduce IndiaBit
But if IndiaBit can ,
# To begin with bring out all BLACK MONEY ( stashed away as paper currency notes )
and deploy the same into mainstream economy for productive purposes , and
# Put a Full Stop to any future generation of Black Money ,
- then my proposal deserves a debate
What will convince RBI / Government to issue OFFICIAL VIRTUAL CURRENCY ?
Here is a brief ( non-comprehensive ) suggestion for proposed Law :
Ø While banning Private Crypto, introduce IndiaBit ( Govt Virtual Currency )
Ø With some effective date, withdraw all Paper Currency ( forget coins )
Ø Minimum denomination will still be called a RUPEE ( easy to convert from paper to digital )
Ø As of a given date, bank balances in everyone’s bank account gets converted to IndiaBits
Ø Set time limit within which people can deposit their paper currency into banks for instant conversion
into IndiaBits
Ø After set date, paper currencies held by anyone ( individual or any legal entity such as a Company ),
loses all value and become illegal for any sell / purchase transaction
Ø All future financial transactions ( sell / buy of any goods or services ) can only be through mobile-app
based DIGITAL transactions
Ø Since all transactions will become DIGITAL, Govt would have full / life-time LOG of each citizen’s “ Sale
or Purchase “ [ Who bought What , When , from Whom , at What price , Where etc ] .
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Dear Smt Sitharamanji,
A word of caution :
Implementation of my suggestion ( described above ), is bound to meet with strong resistance / opposition from persons holding BLACK MONEY ( stashed paper currency in Rs 2,000 notes )
Expect opposition to quote the “ failure “ of De-Monetization to get rid of Black Money
They will strongly oppose total replacement of paper currency, citing enormous inconvenience / hardship this will cause the poor people . I agree with them in respect of hardship if there is not enough notice
Please enable a JPC ( headed by Opposition Member ? ) to draft the Crypto Bill, with full unanimity
I agree that the objective should be limited to : “ Reduced dependency on cash “
And not : “ Replacement of Cash “
May be, 5 years after introduction of IndiaBit, this ( larger ) objective would find acceptance
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 30 Nov 2021
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