Cryptocurrencies are here to stay in different forms whether as floating currencies or Stablecoins- which are pegged to actual currencies or Digital coins issued by Central Banks. The rapid adoption of cryptocurrencies has also led to them being recognised as legal tender by countries like El Salvador.
There are questions on how cryptocurrencies can function like fiat currencies because of the wildly fluctuating nature of their value. However, The technological backbone on which cryptocurrencies function can be the foundation of transforming large-scale payments. An example of this can be when Hong Kong, China, Thailand and the UAE, together with the Bank for International Settlements’ Innovation Hub, carried out cross-border transactions with their central bank digital currencies, on an experimental basis. The transaction took seconds, instead of days, as with the conventional method of transferring payments via Swift. This shows that with the efficient implementation of Blockchain the nature and scale of large international transactions can be transformed.
The distributed ledger which underlies the blockchain technology is useful for supporting smart contracts which means that predetermined actions can be executed when payments are concluded on the blockchain. While the potential of this technology is huge, There are also underlying issues such as huge power consumption when compared to traditional forms of payments.
The policymakers have to come to terms with this new form of currency and dedicated awareness campaigns must be run to inform investors about the legitimate and illegitimate ways in which cryptocurrencies can be used. If the adoption of these currencies goes on unchecked it can undermine the stability of National Currencies and make it difficult for the Central Banks to implement Monetary policy effectively. The upcoming economic models will integrate Cryptocurrencies and Blockchain from the outset and it will have a definite impact on National Economies and their GDP.
Reforms historian and author of best-seller ModiNomics, Sameer Kochhar is Chairman, SKOCH Group. He is a passionate advocate of social, digital and financial inclusion and is a foremost expert on governance and inclusive growth. His work has been acclaimed globally and endorsed by Mr Narendra Modi, Mr M Venkaiah Naidu, Dr Manmohan Singh, Mr Arun Jaitley, Mr P Chidambaram, Mr Yashwant Sinha, Dr C Rangarajan and Dr Montek Singh Ahluwalia and so on. In his thinking and writings and activities, his profound admiration for India's economic reforms and in extension, those outstanding personalities who strive to make these reforms more meaningful and broad-based comes out clear and unambiguous.
Dr Gursharan Dhanjal, MA, M.Phil, PhD from Delhi University, an expert in development economics. He is Vice Chairman, SKOCH Group. He is also Editor of INCLUSION—a quarterly publication that focuses on inclusive growth related areas. He has led various research projects, impact assessments and field studies in MSMEs, women empowerment, entitlements, rights, sanitation, social inclusion, health, financial inclusion, e-governance and ICT for development that included traversing across the country, collecting citizen voices for over two decades now. A prolific writer, Dr Dhanjal has contributed over 200 columns in leading national dailies including The Hindustan Times, The Times of India, The Financial Express and The Pioneer. He has published research papers in several journals of repute in addition to authoring following widely acclaimed books: Tarapur: The Politics of Nuclear Age; and, Infrastructure and Governance. He was member of the Working Group on ICT in Higher Education constituted by Planning Commission for the 12th Five Year Plan.
Dr. Ashwani Mahajan is the National Co-Convener of Swadeshi Jagaran Manch (SJM), an Indian political and cultural organisation. SJM is affiliated with the Rashtriya Swayamsevak Sangh. Dr. Mahajan is an author and columnist. He is an Associate Professor at PGDAV College, Delhi and has also been the Chief Editor of the Journal of Contemporary Indian Polity and Economy since 2011. He is also a Visiting Professor and Research Guide at Pacific University, Udaipur and Mewar University. He works as a researcher and activist on the World Trade Organization (WTO) and other international trade agreements.
As National Co-Convener of Swadeshi Jagran Manch, he has been instrumental in advocating for the evolution of economic policies. His policy interventions include withdrawal of controversial ordinance on land acquisition, getting field trials of GM crops policy revisited, FDI policy of the government especially retail trade and e-commerce.
Consulting Editor, Business Standard &
Senior Adviser, Jana Small Finance Bank
An author and an award-winning journalist, is well known for his weekly column, Banker’s Trust, which now appears every Monday in Business Standard. He is also one of the members of the founding team of Mint, a business daily brought out by HT Media Ltd. In his earlier assignment, he was advising Bandhan Bank on its transformation from a microfinance institution to a universal bank.
