Indian Economy rising at slowest pace - Should they consider Crypto-currency?

[Vishnu.Reang]

The numbers do boil down to about 3%, which is pretty ridiculous. Bolded part also emphasizes why they haven't been too keen towards Bitcoin adoption (more regulatory hell when they can't even handle existing ones), and why its acceptance probably won't help. Instead of looking for external solutions to their problems, they're most likely better off fixing internal problems first.

India is like the worst type of democracy you can get in the world. Around 60% of the jobs (in government services) and seats in the educational institutions are reserved for certain ethnic groups. Only 40% is available for merit (and that share is also constantly decreasing). Farm loans are being waived off year after year, and this is on top of the "income support" for farmers. Subsidies and freebies have killed the Indian economy.

[dothebeats]

Knowing how big India is, idk how would cryptocurrency be able to speed up their economic capabilities in any way. The crypto industry is a relatively small, uncharted and somewhat undeveloped industry even though a lot of governments are already taking steps to regulate it and prevent it from doing damage to the local economy (through scams and what not.) If anything, India needs a more sensible leader that focuses on the economy and not just silly and absurd things.

[RealMalatesta]

Instead of government going into crypto currency as a whole, maybe there should be some sort of support for crypto acceptance and adoption for the public? Like maybe have less taxes for stuff that are sold with crypto? That would make a lot of difference, if the tax of something you buy is lets say 18% but if you buy it with crypto it would become 8% than you will probably pick the bitcoin version, I know it will take a long time for people to move to bitcoin as a whole but overtime there would be more and more people using bitcoin which than turns into bitcoin tax and the government could have a lot of bitcoin they can sell and get dollars and increase the power of their own national fiat. It is just an idea and I am not sure if it will work but sounds like could be at least tested.

[DmitFomin]

I think the government of India is very conservative, so it is difficult for them to change their attitude to innovative technologies and accept Bitcoin. Apparently because of their mentality, their country's economy is not developing very fast. But given the fact that there are many progressive entrepreneurs and enthusiasts in the country, it is quite possible that their government will change its attitude towards cryptocurrencies and will contribute to the adoption and development of cryptocurrencies in the country.

[13abyknight]

Being an Indian, I can tell with a pretty high pitched voice that the Indian government won't be considering cryptocurrency any time soon as the economy is looking to sustain what was a wave of reforms brought by the Modi government which include GST and the famous demonetization. The last thing our country would want is private cryptos like Monero being legal which further helps corrupt politicians to launder money.

[dengpei]

This is regarding the views and opportunities that Indian economy can get through crypto currency looking at the current scenario of India being entering into "Recession period".

This period is thought to be coming because of introduction of Demonetisation in 2017-2018 and followed by introduction of GST into the system. (Referred article https://www.indiatoday.in/news-analysis/story/it-is-not-recession-economy-is-growing-but-at-slower-pace-question-is-why-1594928-2019-09-03)

Overlooking all these scenario I do believe that they should have gone for the Crypto currency acceptance and make the digitalisation more or less stronger than what they would have done earlier. (Demonetisation etc.?? )

I mean crypto could have at least made the influx of money by different platforms of trading, gambling, exchange of products and services etc. The whole process would ave benefited them with the Tax and thus government could've gotten the benefits for the same.

What are the thoughts ?

Crypto would do good for any country especially a developing one like India but the truth of the matter is that its very unlikely to happen in the near future as India is not only pushing for a crypto ban but to make trading punishable by a lengthy jail sentence or death from what I have read.

[IIV]

Crypto is not a solution when you are at economic crisis. They should have considered it some years ago. They just needs to decrease their operational costs and spend moeny to create jobs and boos the economy with internal production and consumption.

But it's basically their own decision to bring economy to here. It's the corruption and scandals that are paying off. It's always the poor who suffers in economic crisis.

Modi knew about it happening a year ago but he was focused on diverging people to unnecessary issues like a fake moon lander and force integrating Kashmir.

[Vishnu.Reang]

Crypto is not a solution when you are at economic crisis. They should have considered it some years ago. They just needs to decrease their operational costs and spend moeny to create jobs and boos the economy with internal production and consumption.

This is correct. The economy is going down because of the burden from freebies. And cryptocurrency is no solution for any of these issues. Rather than reducing the freebies and subsidies, the current government have been increasing them to get the votes. But there is no alternative. The opposition is lead by a clown, and is much worse than the ruling coalition.

[lumierre]

Instead of government going into crypto currency as a whole, maybe there should be some sort of support for crypto acceptance and adoption for the public? Like maybe have less taxes for stuff that are sold with crypto? That would make a lot of difference, if the tax of something you buy is lets say 18% but if you buy it with crypto it would become 8% than you will probably pick the bitcoin version, I know it will take a long time for people to move to bitcoin as a whole but overtime there would be more and more people using bitcoin which than turns into bitcoin tax and the government could have a lot of bitcoin they can sell and get dollars and increase the power of their own national fiat. It is just an idea and I am not sure if it will work but sounds like could be at least tested.

They are trying to create their own crypto money that will be an alternative to the national currency. The law offers harsh penalties for using free cryptocurrencies and Bitcoin. At the same time, he advocates the creation of a new state cryptocurrency. A digital rupee for residents of India will be presented after consultation with the central board of the Reserve Bank of India.

[fiulpro]

It's not the demonetisation it is the government actually the government itself is taking decisions which are decreasing the value of Indian currency.
For any currency to be strong the only thing necessary is good governmental laws and regulations which makes the society plus national banks plus debt to income ratio stable and I don't see this happening.
Cryptocurrencies will only create problems if used entirely...but. If used carefully with proper intellect ..it could actually be a boon ..but ppl need to know all the risks

[BitHodler]

Instead of government going into crypto currency as a whole, maybe there should be some sort of support for crypto acceptance and adoption for the public? Like maybe have less taxes for stuff that are sold with crypto? That would make a lot of difference, if the tax of something you buy is lets say 18% but if you buy it with crypto it would become 8% than you will probably pick the bitcoin version,

I doubt that's going to work where we are today in the world of crypto. If we compare acceptance and how user-friendly both Bitcoin and fiat are, then fiat comes out as clear winner.

Maybe when Bitcoin is really mass-ready, and countries exempt the practice of spending Bitcoin from taxation, then it could be something of interest, but we're so far away from that right now that we have to forget about it.

It's more likely that we see governments tokenize their fiat currencies and shove them right in your throat as the only legal tender. Fiat is already digital for the most part, so tokenization is the next logical step.

[SquallLeonhart]

I think the government of India is very conservative, so it is difficult for them to change their attitude to innovative technologies and accept Bitcoin. Apparently because of their mentality, their country's economy is not developing very fast. But given the fact that there are many progressive entrepreneurs and enthusiasts in the country, it is quite possible that their government will change its attitude towards cryptocurrencies and will contribute to the adoption and development of cryptocurrencies in the country.

India happens to be one of the best country that are IT inclined and people go to them often from different part of the world for learning,  and when it comes to technology, I think they also have the best technology which can be seeing through their hospital equipment which makes people want run to their country for treatment, which is why I found it every  unbelieving  that their cold attitude to bitcoin is because they are conservative.

I don’t know exactly why I could say that they are fighting bitcoin hard, if it were to be country like America, we could say that they are trying to protect their dollar which to them is far more important than what any profit crypto could bring, but what does India have to protect so bad when they would have accepted this technology to better their economy.

[South Park]

Crypto is not a solution when you are at economic crisis. They should have considered it some years ago. They just needs to decrease their operational costs and spend moeny to create jobs and boos the economy with internal production and consumption.

But it's basically their own decision to bring economy to here. It's the corruption and scandals that are paying off. It's always the poor who suffers in economic crisis.

Modi knew about it happening a year ago but he was focused on diverging people to unnecessary issues like a fake moon lander and force integrating Kashmir.

This, the problem of most governments is that they have forgot that they are there to serve people and instead they are just serving themselves, most governments are  too big and have too many people working there and paying too much to their employees, this cannot be sustained and it becomes a burden on the rest of the economy, then the government raises the taxes and to their surprise they become victims of the Laffer curve and they get less money in return as businesses close their doors or begin to try to avoid the harsh taxation.

[mersal]

Black money in Indian economy is one of the main factor that causing them still as an under developed country,in the past they tried demonetization to bring all the black money out but the political influences of ruling party got the most benefits.

There is no actions about the crypto currency in India and only there is banking ban which is still unclear yet.

[SirLancelot]

Black money in Indian economy is one of the main factor that causing them still as an under developed country,in the past they tried demonetization to bring all the black money out but the political influences of ruling party got the most benefits.

There is no actions about the crypto currency in India and only there is banking ban which is still unclear yet.

Black money? what do you mean by black money because this is the first time that I am hearing this, pardon me please if my question is much, but just kindly explain to us what the black money you said is India’s problem is all about?  For the cryptocurrency ban, it might just be people that blew it out of proportion really.

I am not sure that the government form their presidency has even taken any action again cryptocurrency, and I think the person I read started this was one mayor before he left and till now, he has still not said anything about cryptocurrency gain and I am sure that the case that was even in court will surely die down slowly because it seems to me that they are beginning to understand the whole cryptocurrency technology.

[bryant.coleman]

Black money in Indian economy is one of the main factor that causing them still as an under developed country,in the past they tried demonetization to bring all the black money out but the political influences of ruling party got the most benefits.

There is no actions about the crypto currency in India and only there is banking ban which is still unclear yet.

Black money is more of a problem in countries such as China and Russia and yet they have managed to achieve good level of economic progress. The reason for economic stagnation in India is resulting from fiscal deficit, which is in turn caused by the wasteful spending by the government. Freebies are being given like never before and the small salaried class is getting more and more burdened with the taxes.

A country will never be able to progress until the majority of the population pays taxes. In India a very small fraction pays income tax (may be 3% or 4%), while the remaining lives off freebies from the government. Since the tax base is so low, the government is forced to levy very high indirect taxes (GST, VAT, excise duties.etc), which is further impacting the health of the economy.