The mention of cryptocurrencies doesn’t require any introduction or explanation. As one of the most hotly talked-about topics in the recent times, cryptocurrencies have been successful in inspiring discussions (or debates) at dinner tables, corporate board-rooms, even amongst the regular banter amongst the chums.
While authorities and government officials in India continue to warn users against the use of cryptocurrencies for investments or transactions, young and unorthodox Indians haven’t shied away from getting their hands on this global phenomenon.
The same has created a strong impetus in the economy for the mushrooming of several startups venturing into the crypto space, as coin miners, exchanges or aggregators.
In the past, the Government of India has taken certain radical steps favouring tech innovation and disruption. Extending the same treatment of the brimming world of cryptocurrencies will resolve a host of administrative and bureaucratic hurdles in the nation’s ambition of emerging as a developed economy.
Here’s enumerating the radical transformations India would achieve through an active cryptocurrency economy.
Enabling Small Merchants To Benefit From Digitisation
The wave of digitisation in India has been guided by the rise of mobile phone internet connectivity, the advent of Aadhaar authentication and e-KYC, Jan Dhan accounts and more. Furthermore, internet payments and POS machines have also been the key drivers for digitizing payments and banking services.
However, even though the cost of digital payments is reducing, it is still a costly affair due to the involvement of intermediaries. Often, third parties like banks etc. act as the intermediaries, and hence, inflate the costs of such transactions.
Even POS machines have proven to be an expensive bargain for merchants. Although a number of merchants took to POS machines following the demonetization drive, a high number of these merchants are not exhibiting enough interest, despite a huge demand for the same.
The cryptocurrency economy can easily resolve these challenges. When the economy becomes more accepting of cryptocurrencies-led transactions, these small merchants will be able to access digital payments services, at lower costs.
With the reducing price of mobile data packs, a host of small-scale merchants will be able to access cryptocurrencies for even low-costing transactions, without being burdened by excessive overheads.
Making Financial Transactions Immune Of Thefts
The financial world at present, and hence the resulting economy of today, is not immune to thefts or frauds. The world, as we know it, is increasingly becoming vulnerable to sophisticated leaks and hacks. In the past few years, news headlines have been abuzz with several ransomware attacks, data leaks of top-notch banks and credit card companies.
To be honest, our financial systems or the economy stands like a house of cards; a blow and it might all come crashing down to the very ground on which it stands.
For instance, let’s view the security challenges in the context of India. India has been currently going digital, the foundation of which has been formed on Aadhaar authentication, Jan Dhan accounts etc. However, the same is giving rise to security vulnerabilities, with criminals gearing up to crack the security feature of Aadhaar or Jan-Dhan accounts.
Adopting cryptocurrencies completely by-passes such security vulnerabilities. In fact, in a cryptocurrency-led economy, the person wishing to send the money (in this case, crypto) will have complete control of the transaction, as against the credit card companies or banks that would otherwise the controlling the transaction, and by its virtue, the important personal information and data of user’s activities.
Near Instantaneous Settlements
An economy led by cryptocurrencies is fundamentally a decentralized economy. Hence, a lot of time and resources that otherwise go in securing sanctions from the third party, will not be required in a cryptocurrency economy. Thus, the entire time and effort invested in settlements will no longer be required while buying, for instance, a property etc.
Cross-Border Payments At Trailblazing Speed
The benefits of the decentralized economy led by cryptocurrencies are applicable to cross-border payments as well. At present, owing to time-consuming and arduous third-party checks, international payments may consume up to 5 business days.
The same causes a lot of distress, especially during emergency situations. However, the same payments could be done within seconds, owing to cryptocurrencies. Even with oceans spread out between the sender and receiver, cryptocurrencies make money transfers quick and completely hassle-free.
Besides, the values of such transfers would not be subject to any levies or exchange rates, letting users derive the maximum value from their own digital assets or virtual currencies.
Being At Par With The Global Economies
Lastly, cryptocurrency presents Indians, especially the present burgeoning millennial generation with a golden opportunity to be on par with the global economy.
When we consider some of the trailblazing and epoch-making developments of the past, especially the rise of the internet, the entrepreneurial ecosystem, the existence of Silicon Valley etc, India has only been trying to match the pace with global developments.
However, since cryptocurrency is a new and growing domain, the playing field is levelled. Indians, especially the present generation, can easily be at par with this global phenomenon. Considering the global phenomenon that cryptocurrency is, it is the right time for Indians to start building up their digital assets and be secured for the future.