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

[michellee]

Economic growth might be possible of India consider cryptocurrency.
However, the concerning point is, will the government accept it into the country system?
It is one thing for the citizens to use and hold Bitcoin but it is another thing for legalisation of this digital currency to take place.
I feel it will impact in the economy more if the government takes interest in it.

If the government really concern with their people, they can accept cryptocurrency and allow them to search for a new source income. I am sure that people in India will thank you to the government because they can try to get the money from the new source and the best is they can get a better life with that money. If people can get a better life, that will reduce poverty in that country, and the economy in that country will be growth.

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[abhiseshakana]

Since 2013 India has indeed been predicted as a fragile country. India is a developing country that finances its growth by relying on foreign investment recession that occurred in India in addition to being influenced by domestic conditions as well as a result of the global economic slowdown that occurred since last year seen from the flow of investment and global trade. Demonetization is only as poorly planned counter policy which causes a downside on Indian economic.

The discourses that cryptocurrency can be a recession solution in India in my opinion is only a good prediction but the application will require a long time and the fact is that all state ornaments must understand what economic digitalization. Although the government understands that cryptocurrency is a new form of technological development that can no longer be avoided in use in everyday society. But there are also demands from elements of society and state institutions regarding the protection of potential fraud and money laundering practices as well as tax avoidance through the use of cryptocurrency.

In my opinion, the Indian government really understands that technology is very beneficial for them but they also realize that the application of technology can create enormous costs. The main concerns in geopolitics and geostrategy, with the presence of a cryptocurrency endangering India's stability from the threat of terrorism.

[kennen1113]

Economic growth might be possible of India consider cryptocurrency.
However, the concerning point is, will the government accept it into the country system?
It is one thing for the citizens to use and hold Bitcoin but it is another thing for legalisation of this digital currency to take place.
I feel it will impact in the economy more if the government takes interest in it.

If the government really concern with their people, they can accept cryptocurrency and allow them to search for a new source income. I am sure that people in India will thank you to the government because they can try to get the money from the new source and the best is they can get a better life with that money. If people can get a better life, that will reduce poverty in that country, and the economy in that country will be growth.

To be honest, the issue here is not related to accepting or not accepting cryptocurrencies because the crypto platform is unstoppable, people can always use it very easily as long as they have an internet connection, crypto is not a government product, the government cannot ban people from using it, Indian people can use crypto very normally without government permission. However, India's economy is slow in relation to people's knowledge level and development strategy, crypto is hard to solve this problem

[stompix]

I can give you some stats regarding this. Only around 3% of the Indians pay any income tax. Most of the merchants don't pay any taxes, and agricultural income is 100% tax free without any threshold. You can find the so called "farmers" driving around in their Audis and BMWs, without paying a single penny in income tax. And this is one of the reasons why more than half of the population don't want to do any jobs other than "agriculture".

Indian economy will grow only if the government stops the freebies and everyone pays their tax honestly.

But..but ..but...
People say that lowering taxes spurs economic growth.
If Indians don't pay taxes, that's a zero tax policy, so....why is the economy not growing three times as rest?

Also, I think the program is working, I read on a local paper that beet sugar farmers around here are scared India might dump tons of sugar on the market, dropping the price all around the world and we have quite a lot of farmland dedicated to beet. So...it works. 
Of course, there is a bit of sarcasm hidden in here

Although the government understands that cryptocurrency is a new form of technological development that can no longer be avoided in use in everyday society

Common, I live in Europe, my parents haven't touched crypto, my wife knows as mush about cryptos as my kid and he still plays with colored cubes, I have friends at work who are not 100% sure how bitcoin is spelled and you're telling me you can't live without cryptocurrencies today?
Let's, not overexaggerate things, RL cryptocurrency usage is still in the early stage, it's minuscule at this point.
Yes, there will be a time when all this will change but cryptocurrency becoming indispensable in everyday life? Not in a decade at least.

[ene1980]

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 have seen many rulers around the world who come out with splendid policies that could change the face of the nation and i have seen leaders who destroy everything on its way to attain and retain power and the Indian leader is on that category, India was an emerging super power and now the economy is struggling because of their bad policies and instead of clearing the issues we have seen them come up with polarizing useless shits mainly religion, unless these buffoons are dethroned from power nothing can be changed.
More over the government banned bitcoin if i am not wrong.

[auntyjmary]

India needs to take their economic policies seriously and ensure the citizenry enjoy life in good living conditions. The economic situation in India goes beyond incorporating cryptocurrencies, I believe the government needs strong policies and the political will to turn things around for the economy. I believe cryptocurrencies alone cannot solve the financial challenges of any economy in the world.

[STT]

I've been following India and its economy since the turn of the century and it has amazing potential for development similar to how China was finally recognised and developed.    However it also has great problems to overcome and reasons why it is has not already broken through, long standing traditions which are opposed to capitalism in some cases despite being the worlds largest democracy it is not exactly orientated towards open business.

 current scenario of India being entering into "Recession period"

 One of the key reasons India is suffering some tightening in its economic range and expansion could be the rise of the US dollar index recently, some parts of financing come via dollar which means India may struggle to source and repay debts owed in dollars to foreign investors.    The best chance India has to continue growth is from the smallest elements growing within their country, they should consider crypto as a positive I dont doubt.  
  India is on the list of top countries with many people without bank accounts available so any services delivered to those without proper access to simple transactional ability is a positive to aid business.  

  The biggest problem with crypto use in India is they still need that basic line of internet access and basic electronics to keep rising, there are many with but also without, it may just be a question of more time needed.   There is critical mass required in every market where the majority have it easily within their grasp and this payment method becomes viable as the default payment method and that'd be a great thing to see happen in such a large potential early stage market.

[Stedsm]

Frankly speaking, we guys are somewhat happier till any rules and regulations are announced in regards to crypto. The three things you spoke about, i.e.;

Trading - is already being done at a very high pace and I guess we (Indians) come in the top 10 traders amongst the list of all those countries where crypto is frequently traded.

Gambling - though being illegal in some parts of India, we're still enjoying this part because of crypto due to the fact that it's all pseudonymous and we can't really be traced that easy as well as we've got various genres of gambling unlocked due to crypto. The only issue we face is about settling it all into fiat and we're good.

Exchanging of products and services - is also being done with full-fledged security of crypto here (not physical but virtual products ATM) as well as services like VPN and domain names available through Indian hosting websites at cheaper rates than what we used to give in fiat. We can also purchase Gift cards of different websites through crypto with cool discounts which gives us more confidence in using cryptocurrencies.

I don't have any issue if the Gov comes ahead with some positivity on crypto, but I believe they're too old to understand what is all this about. For them, crypto is just one thing and that's "PONZI SCHEME".

[bryant.coleman]

But..but ..but...
People say that lowering taxes spurs economic growth.
If Indians don't pay taxes, that's a zero tax policy, so....why is the economy not growing three times as rest?

I would classify the population in to the following categories: 3% are taxpayers. Around 12% are merchants and rich farmers who do tax evasion. Remaining 85% are welfare rats, who survive on government freebies. So effectively, the first category (3%) is subsidizing the third category (85%). This can't go on forever, because the burden is increasing with every passing year.

The government made a big mistake, when it announced that it will deposit $100 per year to the account of every farmer just before the elections. There are some 700 "farmers" in India and steps like these will make them further lazy and discourage them from learning new skills. Anyway... this measure put a big hole on the budget and it is one of the primary reasons why the government is facing a funds crunch right now.

[jseverson]

I would classify the population in to the following categories: 3% are taxpayers.

Man I didn't think this could be real, but then I stumbled into this:

The number of Indians who pay income tax is low, with just 41 million individuals filing tax documents -- out of a population of 1.3 billion -- in the 2017-2018 financial year, according to the tax office.

This is partly because many Indians earn too little to pay taxes, but huge numbers of people are exempt for other reasons and vast amounts of economic activity are unregulated and conducted in cash without knowledge of the taxman, economists say.

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.

[Jating]

First step would have been for them to even accept the use of blockchain technology for most of their operations and apply it, then we can talk of cryptocurrency, but rather than embracing what will help them generate more money, their lack of understanding about cryptocurrency is pushing they away from one of their economy savior.

You can read that post to see how blockchain is being adopted in India.

https://inc42.com/resources/how-blockchain-could-be-a-game-changer-in-india/

From the release of ICO projects, do you know how such money would have even entered the country where those projects reside? India would have come up with lots of projects that are genuine and use Blockchain technology to fund it and then start taking the produce out of this country. Let’s see how the court case goes and see if there is someone who is well briefed about crypto to explain this whole thing to them.

I think the issue here is broader, population is growing at a rapid rate despite all calls to control them. That's why the country is having a hard time to really get up despite all the supposedly economic reforms past and present regimes are doing. And now they are hard on banning crypto, I guess they just shoot their foot by now allowing crypto to flourish.

[hatshepsut93]

"Country X can be saved by Bitcoin" is just another example of how disconnected from reality some crypto enthusiasts can be. Bitcoin's economy is just a microscopic dot when compared to fiat, all we have is some exchanges, gambling sites, and a few freelance sites with almost no traffic. How are you expecting it to influence economy of a 1.3 billion country?

Or do you think that massively investing in volatile asset with boom and bust cycles is going to help anyone? Then think again - what would happen is that after the initial pump, people who invested early would cash out and pop the bubble, making new investors lose money.

[davis196]

Thinking that cryptocurrency adoption could increase India's economic growth seems stupid to me.
How many Indians use crypto(considering the fact that cryptocurrencies are banned in India,AFAIK)?Less than 0.1% I guess.Adopting crypto might increase that percentage to 1 or 2%,but what about the other 98-99% of the Indian population?

[MonsterV]

If the government really concern with their people, they can accept cryptocurrency and allow them to search for a new source income. I am sure that people in India will thank you to the government because they can try to get the money from the new source and the best is they can get a better life with that money. If people can get a better life, that will reduce poverty in that country, and the economy in that country will be growth.

Maybe that is true, but what government sees is rule, if government is interested in cryptocurrency, government will lose control of their financial system, especially when there are more crypto requests. I myself agree that if crypto is on our side with all its freedom and I myself have benefited greatly from crypto, crypto makes economic equality throughout world and they are often connected, not only nationally but internationally. Yeah, but we can't force what we want because we are under government, it all depends on policies of each government and we are forced to accept it.

[binhvo1505]

 Indians have entered the crypto market quite a lot and many of them are blockchain technicians.
But the bad thing is that India still has a lot of poor households, so their growth rate is still pulled back even though their economy is improving quite well compared to 2015. .
With the intelligence of the Indians, if more people join the crypto market to make money, their economy will also be revived soon.

[lixer]

If the government really concern with their people, they can accept cryptocurrency and allow them to search for a new source income. I am sure that people in India will thank you to the government because they can try to get the money from the new source and the best is they can get a better life with that money. If people can get a better life, that will reduce poverty in that country, and the economy in that country will be growth.

I don't really see how that is going to help or destroy them though, if it's only going to serve as a means of making payments. There is PayPal there already and it is serving for the same purpose there and if they should get a job online they can be accepting payments through PayPal. The only thing I suggest they do with cryptocurrency is just to invest and trade and that's it. Apart from that I don't really see any other thing. I mainly blame the government when a country is bad on crypto regulations.

I have seen a few people in this forum come up with points like these about countries that are economically poor using crypto to grow their level. I have seen Venezuela mentioned a lot of times and people saying they should resort to making use of cryptocurrency to get better.

[Strongkored]

You know what, the world population is currently around 7.8 billion and there are more than 1.5 billion of them under 15 years old, so only 6.3 billion are adults and I believe those who know about crypto are no more than 20% if more or less than 50%.

That crypto is not a solution for countries that are facing or will face an economic recession. India has almost 50% of the population poor so it can be said that they do not understand crypto and even if it is I think they only see crypto as a technology.

So in my opinion crypto is not a solution for a country that is experiencing an economic recession.

[Findingnemo]

Indian government already have a committee about to analyse the crypto currency allowance in India.

But they said bitcoin and all other crypto currencies from private (Other than from India government) should be banned there.

So if India wants then they should pass this bill and make cryptos as illegal there,no other consideration will be taken from them.

[conected]

You know what, the world population is currently around 7.8 billion and there are more than 1.5 billion of them under 15 years old, so only 6.3 billion are adults and I believe those who know about crypto are no more than 20% if more or less than 50%.

That crypto is not a solution for countries that are facing or will face an economic recession. India has almost 50% of the population poor so it can be said that they do not understand crypto and even if it is I think they only see crypto as a technology.

So in my opinion crypto is not a solution for a country that is experiencing an economic recession.

- Agree, the number of people who know about crypto is still very small, so even if the Indian government considers crypto, it will not help their country overcome economic difficulties, besides, India is always considered to be an underdeveloped country and has many crimes in society, it's clear that they won't have too much consciousness to work seriously with crypto. India needs to overcome these issues, rebuild a face of knowledge for its country, then consider crypto, crypto is just a way to make many good people become better, it cannot change the economy of the country too much.

[maianh09]

I don't think Crypto can change the economic situation in India. This is a country with the rich - poor gap, so large that this country has a slow growth rate. India should seek and develop economic sectors that attract foreign investment and create jobs for everyone. That will help this country to grow faster.