While there are many efforts being made by the cryptocurrency industry in India to get the government to come to a decision, there are some, who prefer being spoilsports by stating there is ‘no need’ for cryptocurrencies.
An executive from Ernst and Young (EY), one of the Big Four audit firms, recently came to India and met many government agencies, during the course of his stay. Paul R. Brody, EY’s Global Innovation Leader (Blockchain), said that bitcoin has no practical use.
In a conversation with Forbes India, he stated, “I don’t see any reason why people should be prohibited from owning them. I see bitcoin as just another ‘foreign’ currency — only one without a country. That being said, I see no practical use for bitcoin or nearly any other cryptocurrency.”
However, he believes that “the future of business transactions on the blockchain are tokenised fiat currencies,” often referred to as stablecoins. “Most people and companies earn their revenue and spend their money in local currency, news portal news.bitcoin quoted him as saying.
Referring to bitcoin as an inflation-resistant currency he said, “In fact, it is a highly deflationary currency model, given the limited supply.” He added, “Most economists agree that deflation is, in fact, extremely bad for economies. Inflation, particularly out of control hyper-inflation, has not been a real risk in mature economies for decades.”
To be perfectly candid, Brody did not limit his observations to just India. He is of the opinion that widespread use and adoption of bitcoin could be harmful for the global economy as a whole.
The Indian government, meanwhile, is making strides in the cryptocurrency department. Last month, in order to step up the fight against cyber crimes and by extension, cryptocurrency-related crimes, India’s Union Home Minister Rajnath Singh from the Government of India inaugurated the cyber forensic lab and Cyber Protection Awareness and Detection Centre (CyPAD), which will be operated by police in Delhi. News portal Coin Telegraph reported that within the cell, there will be a special unit focused on countering these types of crimes.
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