Blockchain

Bitcoin should not be treated as a currency. But at the same time it should not be banned. Cryptocurrencies are permissionless systems that operate without intermediaries. As a result central banks cannot implement macro-economic measures in the event of a financial crisis. However, they are programable and can be incorporated into smart contracts offering a number of opportunities for digital financial inclusion. CBDCs are the best of both worlds combining the programability of bitcoin with the stability of fiat currency.

The Supreme Court of India ruled that the Reserve Bank of India (RBI) has the authority to regulate virtual currencies but found its decision to ban regulated entities from providing services to virtual currency exchanges disproportionate. The ruling clears the way for RBI to issue specific regulations on cryptocurrencies, likely more stringent than those in other countries, recognizing the potential stronger adverse effects on India’s developing economy.

While cryptocurrencies like Bitcoin and Facebook’s Libra can enable efficient cross-border transfers, India’s existing UPI system, with its robust digital payments infrastructure, already meets the country’s needs and can be internationalized without relying on blockchain technologies.

The Reserve Bank of India (RBI) has banned regulated entities from providing services related to virtual currencies, citing concerns over consumer protection, market integrity, and money laundering. I question the necessity of this step, since the perceived anonymity of bitcoin transactions can be penetrated. What’s more, the ban may drive nefarious activities further underground, making them harder to detect. I suggest improving forensic skills might be a more effective approach.

The evolution of internet access in India, from a single-user bulletin board service to the vast, decentralized web, mirrors a broader trend towards centralization in digital services. Despite the internet’s expansive possibilities, most users gravitate towards a few familiar sites. This centralization tendency is also evident in Bitcoin’s blockchain technology, where mining pools’ dominance challenges the decentralized ideal, highlighting the need for potential regulatory intervention or system redesign.

Real estate transactions in India are complex due to difficulties in confirming property titles. The Torrens system, offering indefeasible title guarantees, could revolutionize this, as seen in Rajasthan’s new legislation. Implementing blockchain technology for land records could ensure tamper-proof, transparent, and efficient property transactions, modernizing the archaic system.

Music’s evolution from live performances to digital streaming has been shaped by technology, expanding audience reach but often at the cost of artist revenue. With the advent of blockchain-based services like Musicoin, artists can now bypass traditional intermediaries, offering direct access to their music and potentially transforming the industry’s revenue model.

Bitcoin’s distributed ledger technology offers a solution to the trust issue in online transactions, eliminating the need for intermediaries in e-commerce. This blockchain concept can extend beyond currency, revolutionizing contracts, intellectual property rights, and public records by ensuring tamper-resistant, verifiable transactions. Governments could adopt this technology for more efficient, accountable public services, as seen in Rajasthan’s state-guaranteed land titles, potentially paving the way for blockchain governance.