Cryptocurrency – Dutch Uncles

Accepting Payments through Cryptocurrency, A Reality Anytime Soon?

Shalmoli Sarkar — Tue, 25 Jan 2022 08:35:13 +0000

Cryptocurrency or digital currency- a word that gained immense buzz globally and has invited enough pessimism from sceptics about the possibility of fraud, is now being considered by global small businesses as a mode of accepting payment. In 2022, small businesses across nine countries namely Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates, and the United States will be exploring cryptocurrency for payment. According to a study by card company Visa on taking a sample size of 2250 small businesses, it found that 24 percent i.e. 540 small businesses have plans to embrace payments through bitcoins.
The acceptance of cryptocurrency as a payment mode by global businesses can be attributed to no involvement of banks giving less complications that will also aid businesses to scale internationally. The benefit of accepting payment in cryptocurrencies might increase the sale of a business as it will attract crypto investors who prefer such payments. The small business can ace the first-mover advantage with cryptocurrency payment to attract more customers and have hassle-free transactions.

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According to a study by card company Visa on taking a sample size of 2250 small businesses, it found that 24 percent i.e. 540 small businesses have plans to embrace payments through bitcoins.

Getting paid in cryptocurrency

There is an increasing trend to accept payments in crypto for work. Several young engineers and freelancers are working with global companies where their salaries are paid in cryptocurrency. This eliminates the need for a company to pay transaction costs for bank transfers but it has a flipside. Accepting salaries in digital currency can attract legal implications as it violates Foreign Exchange Management Act (FEMA) as these constitute cross-border payments in a currency not recognised by the Reserve Bank of India.
The market for accepting crypto payment has potential since India is a developing economy, where much emphasis is laid on digitisation, making young Indians early adopters of digital currencies. According to a study by Chainalysis, India has close to 15 million crypto investors and is the world’s second-largest country for crypto adoption.

Cryptocurrency transactions in Indian businesses anytime soon?

Indian businesses embracing payments in cryptocurrency seems to be a distant possibility as the government plans to regulate resulting in a ban on private digital currencies.
In addition to the above, the challenge to accepting crypto payment lies in its price volatility which makes its value unpredictable. For instance, when Bitcoin was introduced in 2009 its value was in pennies, and in 2017 its value ballooned up to $19,172 per coin.
Indian businesses are already vulnerable to cyberattacks since its pivot to remote working and digitisation. Although crypto transactions can evade threats such as stolen credit card numbers, they cannot be said as safe and can get hold of users’ wallets. This is dangerous for use in transactions unless it is a fiat currency. A fiat currency is a government-issued currency that is not backed by a commodity such as gold. Such currencies are existing in American and European economies, whereas India is yet working to introduce a basic central bank digital currency ( CBDC).

Lastly, even if the Indian government launches its digital currency, the adoption of it by the businesses would depend on technical capabilities, awareness about new age-deep technologies including blockchain and crypto other than artificial intelligence, machine learning, and the internet of things.

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Non-Fungible Token : A New found Love for Celebrities, Artists and Content Creators

Shalmoli Sarkar — Thu, 23 Dec 2021 09:00:09 +0000

Whether to trade in cryptocurrency or not is still debatable in India and meanwhile South Indian superstar Kamal Hassan announces to foray into the digital space with the launch of his digital avatar- a non-fungible token in partnership with Fantico – an Indian licensed digital collectibles platform. This makes him the first Indian celebrity to do so.

Soon after Hassan entered into the metaverse, Indian celebrities starting from Amitabh Bacchan, Salman Khan, fashion designer Manish Malhotra, Sunny Leone, Vishal Malhotra, and India’s wicketkeeper Rishabh Pant are following suit to foray into this space by launching their NFTs ( Non-Fungible Tokens).

But, what is it that NFTs have piqued interest amongst Indian celebrities?
For that, we will first understand what an NFT is all about.

What is an NFT ( Non-Fungible Token)?

The non-fungible tokens are blockchain-certified copies of digital art, pictures, videos, music, pixelated punks that are unique and cannot be duplicated. The word ‘fungible’ here means it cannot be split or duplicated. The tokens are digital items that can be bought and sold using blockchain technology which is the same as the technology as cryptocurrencies. The NFTs have gained immense popularity in the past few months. According to the online marketplace OpenSea, monthly sales of NFTs ballooned from USD 8 million (roughly ₹ 60 crores) in January 2021 to USD 95.2 million (around ₹ 714 crores) in February.

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According to the online marketplace OpenSea, monthly sales of NFTs ballooned from USD 8 million (roughly ₹ 60 crores) in January 2021 to USD 95.2 million (around ₹ 714 crores) in February.

How does the trading happen in NFT ( Non-Fungible Token)?

Similar to cryptocurrencies, NFTs are traded on specialised platforms and are part of the Ethereum Blockchain. The word fungible draws the major difference between cryptocurrency and NFTs. If we trade one bitcoin for another bitcoin we will have the same thing, but when we trade an NFT for something we will get something entirely different. A sale of NFT does not involve the physical transfer of the object portrayed by the token. For instance, say we NFTs of noted digital art have been sold but the buyer does not receive the art but what changes is the ownership of the art which the buyer receives in the form of a certificate of ownership registered on the blockchain and secured in a digital wallet. The original creator receives a royalty for each token resale, because the metadata contains the creator’s identity.

NFTs – a revenue churner for celebrities, artists, and content creators

Indian celebrities comprising actors, cricketers, and artists are finding NFTs a lucrative medium to directly reach their audience and earn more money. Especially for the artists who earlier had to organise traditional exhibitions and look for sponsorships from brands that involved many intermediaries that consumed time. The NFTs offered a solution that made their talent reach people also offering them a personal experience. Investors also take pride in owning something unique.
NFTs offer inclusive growth to all content creators since through this medium they receive the true worth of their creativity, can interact with the customers and buyers can offer different kinds of assets for liquidity using NFT.

A fillip to the revenues of the creator economy

NFTs will create new avenues of economic opportunities for content creators. The content creators usually depend on social media platforms whose significant revenue sources are the ads displayed for their fan base. A creator does not realise revenues from the benefits of the platform which NFTs are offering.

Lastly, investors find investing in NFTs to be skeptical since for instance if one painter paints the original Hussain’s horses, that person will not become MF Hussain or the copy will not have the same value monetarily as the one drawn by the original artist. Currently,in India there is no separate legal framework for NFTs in India and one can easily buy one from platforms such as BuyUCoin, Binance, WazirX and many others.

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Amazon Denies Plans to Accept Bitcoin, What Does This Mean?

Aakash Sharma — Wed, 28 Jul 2021 12:35:08 +0000

Amazon Inc. posted a job opening for a digital currency and blockchain product lead on July 22, 2021. This led to speculations across industry experts and media circles that Amazon has finally started on its path toward accepting cryptocurrencies like Bitcoin as a payments mode for the transactions on its e-commerce platform. But yesterday, the e-commerce and retail giant denied such media reports.

The report about Amazon’s acceptance of Bitcoin by the year-end published by some of the most prominent news groups sent the world’s biggest cryptocurrency up as much as 14.5% before it trimmed gains to last trade 6% higher at $37,684.04.

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As per an Amazon spokesperson, notwithstanding the company's interest in the space, the speculation that has ensued around its specific plans for cryptocurrencies is not true.

However, the e-retail giant remains focused on exploring what such a move could look like for customers shopping on Amazon without a particular timeline.

Not Amazon, but other big companies have already embraced Cryptocurrencies

Bitcoin adoption as a payment option for businesses is proliferating. This acceptance is bringing the previously untrusted and looked-down-upon cryptocurrencies closer to significant financial inclusion. Fast-food chains, major tech companies, and even auction houses are embracing cryptocurrencies.

Tesla Inc., Elon Musk’s leading electric vehicle company, has announced plans to accept Bitcoin as a payment method after carefully researching the amount of renewable energy used to mine the coin. More and more companies, including PayPal and Xbox, accept Bitcoin and other cryptocurrencies as a means of payment, and others are evaluating their options. Starbucks and Microsoft are other big names that have taken a big step forward.

What are the benefits of Cryptocurrencies as the Payment method?

The main attraction of cryptocurrency for many businesses and users is the autonomy that digital currency gives. They can control the use of money without intermediaries such as banks or governments. Although cryptocurrency exchanges generally charge the “manufacturer” and “consignee” fees, along with potential deposit and withdrawal fees, cryptocurrency users are not restricted by traditional bank fees. This means, among other things, that there is no minimum account maintenance or balance, no current account costs, and no refundable deposits.

Like many online payment modes, crypto users can pay for their coins wherever they have Internet access. This means that purchasers never have to visit a bank or a store to buy a product. The fact that some of the world’s biggest companies are embracing crypto-trade and people are also jumping on this digital bandwagon is proof enough to show the potential of this future mainstream currency.

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Central Bank Digital Currency, Explained

Aakash Sharma — Wed, 28 Jul 2021 10:05:08 +0000

Central Bank Digital Currency – CDBC – is a digital currency issued by a central bank, and it generally takes on a digital form of the nation’s existing ‘fiat’ currency. To put it simply, in India, a Central Bank Digital Currency will be the digital form of the Indian rupee, regulated by the government laws and under the respective financial regulator’s ambit.

T Rabi Shankar, Deputy Governor, Reserve Bank of India (RBI) recently delivered a speech highlighting the central bank’s perspective on a controversial yet fundamental issue: the central bank digital currency (CBDC) and the future of private cryptocurrencies.

Digital currencies are becoming more popular, and there is increasing pressure on central banks worldwide to create virtual “currencies”. With such a trend, the RBI is also ready to go down this road, but how it will make India’s CBDC remains to be seen.

What is a central bank digital currency?

A central bank digital currency is a legal tender issued in digital form by a country’s central bank. It is similar to legal tender currency but has a different (digital) structure and can be exchanged face-to-face with government-issued money. In other words, the CBDC is identical to the fiat currency; it is simply digital in form. Given the recent emphasis on the issue, it seems likely that India will soon start building its own CDBC.

When will the Indian CDBC be implemented?

The recent comments about CDBC by RBI’s top executive came after the European Central Bank stated that it would enter a 24-month “investigation phase” regarding the currency. If successful, a “digital euro” will be in place by 2025. The People’s Bank of China also said last week that trials of digital Yuan reached $5.3 billion in trading volume at the end of June.

Central banks around the world are paying more attention to digital currencies. CBDCs will be part of the arsenal of most, if not all, of the world’s central banks. As per the RBI, in India, a calibrated approach will be considered in consultation with management and stakeholders for CBDCs. For quite some time now, the central bank has been exploring the benefits and risks of issuing a CBDC. No time frame has yet been given for the implementation and launch of an Indian CBDC, but its development is undoubtedly underway.

Step-by-step implementation – what does it mean?

The RBI plans on a phased and gradual issuing of its own version of CBDC. This will be done after careful consideration of the implications for various issues, including the difficulty that will make it complex for banks to obtain deposits and the potential impact on monetary policy behaviour.

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There is a possibility that pilot tests for the CBDC can be done in wholesale and retail segments in near future as per the RBI's official stance.

The RBI is currently working towards a phased implementation strategy and examining cases which could be implemented with little or no disruption. The Indian central bank will also draw upon the lessons from other countries in various stages of introducing such a digital fiat currency.

How will this affect different sectors and industries?

With the introduction of the CBDC, there can be significant benefits such as reduced dependency on cash, slashed transaction costs and regulatory risks, and improved returns on the government currency. It will also promote more robust, efficient, reliable and more regulated fiat payment methods.

The adoption of the CBDC could also have a significant impact on the banking system. The CBDC can reduce the demand for trading bank deposits and reduce liquidity on the settlement of transactions. It could also cause a shift away from bank deposits.

What can start-up and small businesses expect from it?

By following global trends in CBDCs deployment practices, Indian start-ups can be nurtured through India’s own digital currency ecosystem. With substantial participation and exposure to modern-day digital tools, such as the CBDC, start-ups can plan wider and lay a solid foundation for their free-market businesses and financial models.

Additionally, by using central bank digital currencies, consumers can own and trade CBDCs without a bank account, thereby attracting a broader audience to start-ups for cross-industry transactions. It will provide consumers and businesses with a channel to receive and return CBDCs in exchange for cash and commercial bank funds and deliver immediate point-to-point value without clearing or settlement.

Ultimately, the CBDC is traceable and controllable in terms of issuance and ownership, providing every user and business with a healthy and legitimate financial footprint.

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Cryptocurrency, To Invest or Not to Invest

Shalmoli Sarkar — Fri, 02 Jul 2021 05:39:05 +0000

Cryptocurrency – a recent buzzword in the fintech space is surrounded by ambiguities on investing, ever since its encryption technology drew the suspicion of the government. The suspicion of the government over cryptocurrency grew over its characteristic of open-source software where users can produce a private currency and make transactions without the need of any central clearing authority from a bank or any financial institution.Its existence is enabled by blockchain technology – a distributed ledger technology that ensures complete encryption of transactions eliminating the need for a third party for validation. The fact these transactions will not be overseen by any regulating body, made the government wary about illegal activities or money laundering thus, deciding to ban it in India.

Government’s current stand on Cryptocurrency being Legal

Let us revisit the statement made by Finance Ministry in 2018 on cryptocurrency:

‘The Government does not consider Cryptocurrencies “as Legal Tender or Coin” and will take all measures to eliminate the use of these Crypto Assets in Financing “Illegitimate Activities” or a Part of the Payment System the Government will explore the use of Blockchain technology proactively for assuring in Digital Economy.’

The above statement had advised that there will be no involvement of banks or financial institutions to deal in any form of virtual currencies or provide services for facilitating any person or entity in dealing with or settling them. The statement confirms the fact that the government was never against the technology but their intention to ban it was to prevent the illicit use of cryptocurrencies and blockchain. There was no mention to prohibit the buying, selling, or holding of cryptocurrency. Cut to 2020, Supreme Court has turned down RBIs 2018 circular that had forbidden banks to participate in cryptocurrency trading, however, no leniency in processes to carry out customer due diligence in line with regulations governing standards for Know Your Customer, Anti-Money Laundering, Combating of Financing of Terrorism and obligations of regulated entities under the Prevention of Money Laundering Act. Though the Supreme court’s decision to allow banks for crypto trading came in 2020, but the actual clarification from RBI came recently in 2021 that has cleared the confusion and has brought relief to all investors and crypto exchange platforms in India.

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Cryptocurrency's encryption technology has put the government in a fix as there is no regulatory body to monitor the process at the same time it does not want to be eluded from blockchain's benefits.

Buying, Selling, and Trading of Cryptocurrencies

According to Chainalysis, the investments in bitcoin, Dogecoin, and Ether grew from $200 million to $40 million since 2020 with Indians holding over 25000 tonnes of gold. What is noteworthy is despite RBI not favouring digital currencies the crypto investments have ballooned. The trading of cryptocurrencies is a no-brainer. A crypto investor can download a crypto exchange app from Google Play Store or App Store. After filling in credentials and completing the KYC process, they can transfer money to the wallet and make the purchase. There are limitations of the amount of buying and what we can buy. The investors can begin with as low as they want to and they also have the option to set a pre-decided limit for selling and buying crypto

Current Bitcoin exchange platforms where Indians are investing

According to data from crypto exchanges, around 1.5 crore Indians have invested Rs 15,000 crore in cryptocurrencies. The most popular crypto exchange platforms have been WazirX and CoinSwitch Kuber. The lucrativeness of this space has given birth to 350 start-ups in blockchain and cryptocurrency. The space is witnessing an influx of retail investors interested to invest in these exchange platforms. Several fintech start-ups are receiving funds to develop the exchange space in cryptocurrency. Crypto exchange start-ups like CoinSwitch Kuber within six months after its launch have witnessed more than 2 million users registering as investors in its platform.

The Apprehensions of Unregulated Cryptocurrency in India

Although the government has given a green signal for buying and selling cryptocurrency and hereby has declared it not to be illegal there still exist apprehensions about its regulation. What is pricking the government is the absence of any central authority regulating it. The government is in a dilemma as it wants to introduce regulations and does not want to be a laggard in the new-age tech revolution to reap the benefits of blockchain technology. It is planning to bring a regulatory framework i.e., Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, that is expected to bring in regulation in this space.

What lies ahead in the Cryptocurrency Space or Exchange platforms?

The government will not settle without establishing regulation in the cryptocurrency space. It is anticipated that the government will introduce a bill to create a sovereign digital currency and simultaneously ban all private cryptocurrencies. The Central Bank Digital Currency (CBDC) will work similarly to the private cryptocurrencies on digital ledger technology except for the latter’s buying limits which are rare to decrease or increase. The supply and demand of CBDC currency will be controlled by central banks which will be in charge of the money supply and can control when to remove or add money to stimulate the economy in times of distress and set interest rates.

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Blockchain Start-Ups in India Disrupting Finance

Anju Nambiar — Tue, 08 Jun 2021 08:31:42 +0000

What is Blockchain?

It is defined as a ‘digital ledger of transactions’ and is a technology that powers cryptocurrencies and NFTs (non-fungible tokens is a unit of data which when stored on a blockchain, certifies a digital asset to be unique and hence non interchangeable).

What is Disruption?

Disruption essentially means the ability to rapidly change an industry and subsequently cause changes to other linked sectors as well. In this scenario, the Blockchain technology is disrupting finance by transforming payments across many other sectors like Cybersecurity, Healthcare, etc.

Indian start-ups disrupting finance

Polygon

Polygon wants to make blockchain mainstream. The start-up is disrupting finance by facilitating quick, low-cost transactions on the main chain and by attracting high investor interest. Polygon’s very own form of Bitcoin named ‘Matic’ is among the top 20 global currencies with a market cap of over $10B.

Instadapp

Instadapp is a Hyderabad-based blockchain start-up which is disrupting finance with their blockchain-based platform that’s solving problems in decentralised financing. The regulatory landscape in India which is not conducive to crypto transactions. Instadapp offers foundational DeFi (decentralised finance) integration which services can plug into in the absence of infrastructure and can even offer their own system to top it.

WazirX

WazirX, a Mumbai-based cryptocurrency exchange is disrupting finance even amidst the regulatory cloud in India and RBI’s apprehension of the crypto boom. Their NFT (Non-Fungible Tokens) marketplace recently went live. Banks and crypto exchanges like WazirX are at war regarding crypto investments. But that is not deterring WazirX from taking leaps in enabling crypto usage in India with its NFT trading platform which is the first of its kind in South Asia.

Other noteworthy Blockchain start-ups disrupting finance

CoinSwitch Kuber, an Indian focused crypto exchange is popular among newbies to the crypto world for its clean UI. Psi Phi Blockchain lab is disrupting the healthcare and supply chain industries by optimising the supply chain data flow with blockchain-based products for these sectors. Next is Print2Block, a Chennai-based blockchain start-up which is disrupting governance by assisting the state government of Maharashtra in issuing Covid-19 test certificates. Also worth mentioning is Primechain, which is disrupting the banking sector with its blockchain based solutions.

Zebi is another noteworthy start-up which has come up with a unique NFT platform for the cricket world. Unique digital collectibles pertaining to cricket (e.g., an autograph) can be exclusively purchased and owned on Zebi’s platform.

KoinEArth’s MarketsN platform is disrupting the supply chain by enabling greater collaboration between suppliers, logistics, service providers, and distributors. CoinDCX, a cryptocurrency exchange, is targeting millennial and GenZ crypto investors to consider Bitcoin as an investment class asset. SoluLab’s blockchain applications are disrupting multiple industries like finance, healthcare, real estate, and more. The company is also offering blockchain development services and is also an active investor in this space.

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CoinDCX, a cryptocurrency exchange is targeting millennial and GenZ crypto investors to consider Bitcoin as an investment class asset.

What’s in it for me?

The biggest outcome of investing in a blockchain start-up is that you can facilitate lightning-fast payments and transactions for your customers. The upside for customers availing blockchain services is that they will enjoy a better output at much lower fees compared to banks and traditional financial institutions.

Blockchain technology is piping hot currently in the fintech world and start-ups are in the race to capture the market. Some of the successful Indian start-ups mentioned above have shown tremendous growth and potential, even amidst a less conducive environment within the country. Blockchain is a goldmine to tap into mainly because it can disrupt multiple industries. Start-ups venturing into Digital Contracts have immense potential of winning foreign investments.

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Future of Cryptocurrencies like Bitcoin and Ethereum in Helping Indian SMEs

Aakash Sharma — Tue, 08 Jun 2021 03:35:04 +0000

Ethereum, popularly traded as ETH or Ξ, is a decentralised, open-source blockchain cryptocurrency with smart contract functionality. Following Bitcoin, it is the second-largest cryptocurrency by market capitalisation. Ethereum is the most active blocking chain. Russian developer Vitalik Buterin along with Gavin Wood programmed this cryptocurrency in 2013.

Ethereum is a decentralised finance (DeFi) application that provides a wide range of financial services without the need for regular financial intermediaries such as banks or stock exchanges and allows cryptocurrency users to enter into contracts or hold their own loans.

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Ethereum is home to digital money, global payments, and application - the crypto community has built a booming digital economy.

Can Indian MSMEs Get Relief with Cryptocurrencies like Ethereum and Bitcoin?

With the high tide of blockchain and cryptocurrency, it is time for India to partner with world-renowned cryptocurrencies to fund SMEs and help businesses grow. The government can do this by channelling legitimate investors through Indian and international exchanges, which will help eliminate a $500.5 million funding gap for SMEs.

According to experts, major crypto applications and tokens in India can be credited to MSMEs for financial backing. The difficulty of lack of credit for India’s vast strip of micro, small and medium enterprises (MSMEs) has appeared to be unending so far. For the uninitiated, the credit gap for MSMEs in India is estimated to be a whopping $380 billion, as per the World Bank.

Today, the critical question is – to back businesses of all sizes in India, could there be an investor segment with an essentially volatile investment appetite mixed with a global outlook to support vast local and small business assets? Experts believe that cryptocurrency investors could be the answer to this question.

Crypto is Bringing Fundamental Change for All, including SMEs

Changes in blockchain technology and regulations have caused a fundamental shift between private and public equities. By adding a solid community of private investors and preparing to support the private sector tomorrow, India needs to democratise private sector investment and finance the enterprise of Indian SMEs.

With the rise of cryptocurrency, banks will ultimately have to use blockchain technology to facilitate crypto investments. The whole contemporary banking structure is an obstacle to the financial absorption of cryptocurrencies in the country. India needs more innovative systems to ensure faster penetration, better investment and better performance across the sector.

Cryptocurrencies in India need Regulation, Not Bans

For the Indian cryptocurrency industry to reach its full potential, the regulatory framework needs to be clarified. To harness the power of crypto in India, tax authorities must work with governments on crucial issues such as definition and ownership, compliance, certification and reporting and taxation.

The crypto giants like Ethereum, Bitcoin, Dogecoin, Polygon Matic, etc., today are bigger than the numerous tech giants in India. As soon as India adopts the technology with open arms, stringent policy and regulations, all these new channels will add to the economy. In addition, by increasing information on foreign investment, crypto can meet the financial needs of SMEs.

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Indian Blockchain Tech Startup Polygon Added to Mark Cuban’s Portfolio

Aakash Sharma — Sat, 29 May 2021 07:35:04 +0000

Polygon, formerly known as Matic Network, is a protocol and framework start-up dedicated to building and integrating Ethereum-enabled blockchain networks. The start-up combines a scalable Ethereum solution that supports the cryptocurrency’s multi-helical ecosystem, and is now backed by Mark Cuban.

Polygon was established in 2017 by three Indian software engineers – Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. They started the company to provide faster and cheaper transactions on the popular programmable blockchain Ethereum using Layer 2 sidechains.

Blockchain is a method of recording data that makes it difficult or unlikely to change, hack, or cheat the system. Blockchain is essentially a digital transaction log that can be copied and distributed over the network of computer systems in the blockchain.

The layer two side chains are a blockchain that works closely with the Ethereum core chain. The scaling solution has been widely adopted with more than 250 decentralized applications, 76 million transactions and 790,000 unique users.

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Polygon aims to solve pain points associated with blockchains, such as high gas fees and slow speeds, without sacrificing security.

Why has Mark Cuban Invested in Polygon?

American billionaire Mark Cuban has recently invested in Polygon. The company says that it was now part of Mark Cuban’s portfolio. Cuban is one of the biggest proponents of cryptocurrency, especially Ether and Dogecoin. His crypto portfolio consists of 60% of Bitcoins, 30% of Ethereum, and other currencies that account for the rest. Cuban has invested in more than ten blockchain start-ups and is a big promoter of the bright future of cryptocurrency.

Polygon Captures the Crypto Scene in India at the Right Time

Polygon is the first well-structured and user-friendly platform for scaling and infrastructure development of ethereum. The company aims to improve the usability and utility of the current decentralized ecosystem. Its crucial element is the Polygon SDK, a flexible and modular framework that supports creating a wide variety of applications.

In recent years, demand for scalable two-part solutions has attracted capital inflows, leading to the rise of Matic coins, Polygon’s original cryptocurrency. Matic is a made in India cryptocurrency which has grown by over 8,000% over the previous year. With a market value of approximately $11 billion, Matic is one of the 15 best cryptocurrencies in the world.

What has Polygon done to disrupt the cryptocurrency industry?

Polygon has effectively transformed Ethereum into a complete multi-chain system: The Internet of Blockchains, this multi-chain system is similar to other methods such as Polkadot, Cosmos, and Avalanche and has the advantage of protecting the open Ethereum ecosystem. With Polygon, a new structure has been created around existing mature technology to expand the capability of the developer ecosystem to meet a wide variety of needs.

Polygon will continue to develop the core technology to expand it into a larger ecosystem. Needless to say, Polygon and it’s made in India cryptocurrency $MATIC crypto is playing an essential role in system security and control while opening avenues for Indian crypto enthusiasts simultaneously.

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What Is Cryptocurrency Bill 2021?

Naina Sood — Tue, 16 Feb 2021 06:35:04 +0000

A cryptocurrency is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.

As India witnesses a surge in the number of cryptocurrency investors and in trading volumes, the Central government has decided to bring a new bill on cryptocurrencies – The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 – in Budget 2021. Finance Minister Nirmala Sitharaman has said that an inter ministerial committee (IMC) has suggested a ban on private cryptocurrencies in India, like Bitcoin, in India. The committee has pitched for the introduction of an official digital currency that will be appropriately regulated by the Reserve Bank of India.

A high-level Inter-Ministerial Committee (IMC) was constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions. The detailed text of the bill has not been released in the public domain so far.

Key features of the Cryptocurrency Bill 2021

Ban on all private cryptocurrency

The committee has suggested a ban on private cryptocurrencies, like Bitcoin or Ethereum. This might cause a loss to the existing crypto investors in India. However, speaking from a legal point of view, even if the ban is imposed, the crypto holders will still have the option of international exchanges to trade their holdings and there will be no loss of money. Therefore, it would be wise to trade the crypto holdings as soon as possible to prepare for the eventuality of the ban. Also, what is ‘private cryptocurrency’ remains unclear for now as the draft has not been made public.

Introduction of central bank-backed digital currency (CBDC)

The committee has pitched for the introduction of an official digital currency, known as central bank-backed digital currency (CBDC), that will be appropriately regulated by the RBI. While China could officially roll-out its CBDC this year, other leading central banks, including the Bank of England, European Central Bank and the United States’ Federal Reserve, are also working on developing a digital currency. The RBI might also get a digital version of the Indian Rupee in sync with how other countries are trying for their own currencies.

A CBDC can take many forms such as issued on blockchain ledger like private crypto-currencies, a Demat account like in stocks, a specific payments instrument or an account based CBDC. There can be retail CBDCs which would be accessible to all types of consumers or wholesale CBDCs that are meant only for institutions.

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A high-level Inter-Ministerial Committee (IMC) was constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions.

Formulation of a regulatory body/framework

Reporting of sale, trade and usage of the currency to an authority would ensure the identity of participants and the amounts transacted, thereby preventing anonymity in cryptocurrency transactions. The committee has pitched for setting up a legal framework to directly regulate the currency by either RBI and Securities and Exchange Board of India (SEBI).

Digitalisation has led to rapid influx of cryptocurrency in India, especially among start-ups who have been voicing for a proper legislation regarding investment in cryptocurrencies as there is a potential for raising millions through investments made by both Indian and foreign firms.

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Can Blockchain and Cryptocurrency Go Hand in Hand?

Shalmoli Sarkar — Tue, 16 Feb 2021 02:35:04 +0000

Cryptocurrency a borderless form of transaction that was banned by the Reserve Bank of India in 2018 since it raised concerns on market integrity, consumer protection, and the possibility of money laundering. It was last year in March when the ban was lifted since Supreme Court felt it was violative of freedom of business and profession under Article 19(1)(g) of the Constitution of India. Cryptocurrencies witnessed a surge in India after people started looking for an alternate way to earn money amid job losses and pay cuts. The current size of verified virtual currency users in India is 1.7 million India as per IAMAI (Internet and Mobile Association of India). Despite the ban lifted on cryptocurrency the Indian Government is yet sceptical of this novel currency’s working and is apprehensive of the risks associated with it. However, the Government has confidence in blockchain technology due to its characteristic of data not being able to tamper easily.

In 2017, China that had banned virtual currencies has recently opened gates for bitcoin trading. This raises the question that since blockchain technology enables the existence of cryptocurrency, then why Indian Government is shy in giving a green signal to cryptocurrency.

How blockchain is involved in cryptocurrency?

A blockchain is a specific type of database with its only difference being information or data stored into groups also known as blocks. Every block in the chain can accommodate a certain capacity of information. It is a distributed ledger system of all information or data across a peer-to-peer network. Every time a piece of new information is added, a record of the same is added to every individual’s ledger. This technology allows organizations to store any records or transactions eliminating the need for intermediaries. Thus, blockchain technology allows virtual currencies to run without any central authority further eliminating the processing fees.

Now coming to cryptocurrencies, they are open-source software whose access to source code is available to everyone. It has an online ledger of transactions that is maintained by independent people known as miners who are rewarded in virtual currencies for first completing blocks of verified transactions that are added to the blockchain.

The reason government fears cryptocurrencies because:

Since the currency is decentralized, there is no central bank or governing authority that issues the money or transactions. Illegal financial transactions are probable.
There can be frauds involved in the process of mining causing investors to get fooled.
The open-source nature of virtual currencies can be altered by anyone.
India lacks robust laws of cyberattacks and since the transactions in crypto are viewable by anyone, hackers have easy access to the system.

How is India reacting to it?

Indian Government is not completely against cryptocurrency but wants to ban the use of all private cryptocurrencies in India. Instead, the RBI has decided to come up with the central bank’s digital currency. Such official digital currencies are being implemented by central banks of countries such as Canada, the USA, Singapore, Tunisia, Senegal, and China.

India’s official digital currency

Unlike private cryptocurrencies, the digital currency that will be issued by the central banks of India will hold the same value as fiat currencies issued by a country’s central bank. Here, the digital money will be controlled and will remain in the custody of the licensed banks. The digital currency will be backed by RBI the trading will be considered legitimate.

Digital payments for transactions have seen a spike in the pandemic that is ushering the growth of the fintech sector in India. After India’s digital currency is constituted, it will pave the path for fintech start-ups operating in the blockchain space to enter the cryptocurrency industry. Though blockchain and cryptocurrency differ from fintech but altogether the three will create a new technological ecosystem to deliver new kinds of financial services.

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