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Showing posts with label Digital Currency.. Show all posts

Indian Digital Currency Era – A Quick Look

Compared to more conventional forms of money like cash notes or coins, electronic money stored in bank accounts, mobile banking applications, and credit cards is quickly replacing the public's perception of finance.

The popularity of UPI demonstrates the preference for digital money systems. India has been pushing hard to become cashless, starting with the decision to implement demonetization in 2016. That same year also saw the launch of the real-time payments system known as the Unified Payments Interface (UPI). The paradox in the existing system is that although digital transactions are becoming more common, cash is still very popular in India.

In terms of transaction value, UPI executed 7.3 billion transactions in October, totaling Rs. 12.11 lakh crore, a record high. While volumes increased 73.3 percent during the same period, transaction values increased by 56.6 percent year over year.

Cryptocurrencies vs. Digital Rupee

A CBDC, as defined by the RBI, is "a legal tender issued by a central bank in digital form. It can be exchanged one-to-one for fiat money and is equivalent to it. All that has changed is its form. "

However, it is impossible to directly compare a CBDC to a cryptocurrency.

"A CBDC is not a commodity or a claim on a commodity or a digital asset, unlike cryptocurrencies. They are not money definitely not a currency in the sense that the term has historically been used, "according to the RBI's release.

According to the tracker maintained by the Atlantic Council, 98 nations are currently investigating CBDCs. Of these, 11 nations have started CBDCs. In light of this situation, the RBI is acting in a calibrated way to start CBDCs. It is currently looking into the possibility of implementing wholesale CBDCs based on accounts and retail CBDCs based on tokens.

"When something new enters the market, the old need to adapt, and the new need to control the change", says Nikhil Kamath, co-founder of Zerodha. "While many have been critical of #CBDC, we might be overlooking the big picture, remittances, unbanked economy, and minimizing subsidy leakage."

The increasing use of cryptocurrency stablecoins, which tie their value to another currency or asset, has also alarmed a number of central banks. According to a Press Trust of India report, RBI officials informed a parliamentary finance committee in 2022 that the 'dollarization' of a portion of the economy by cryptocurrencies could be detrimental to the nation's interests.

Money transfers via cell phones would be quick and easy, according to Sathvik Vishwanath, co-founder, and CEO of Unocoin, a rival cryptocurrency exchange. The digital rupee will most importantly aid in the eradication of problems with counterfeit money.

According to FIS's Cheema, adoption of the CBDC in the wholesale sector (CBDC-W) has large benefits and substantially fewer dangers than in the more complicated domain of retail CBDC (CBDC-R). In the future, CBDC-R will supplement existing payment structures, not replace them.

The digital rupee will therefore be available for use by all Indian citizens whenever the RBI begins to print it.




E1 Salvador Hosting Promotional conference "Adopting Bitcoin"

 



The first nation to embrace bitcoin as authorized cash in the year 2021 is El Salvador. There is no evidence in recent years that suggest that the country El Salvador will renounce crypto accord. The country will be hosting the conference “adopting Bitcoin” which will aim to encourage the adoption of 
Bitcoin. 

The conference “Adopting Bitcoin” will include an examination of technology and financial inclusion will be done. Approximately 110 speakers will be joining from 30 countries, one of the notable personalities is Senator India Kempis of Mexico.

In the 3rd week of November from 15th to 17th, the Bitcoin Beach conference will take place in San Salvador and the surrounding area. There is no event like the Bitcoin Conference that brings together the entire Bitcoin ecosystem for the purposes of collaboration, networking, and education.

E1 Salvador hosting a crypto-adopting conference

Bitcoin Beach Wallet, a bitcoin wallet developed and operated by Galoy Inc., is being rolled out in El Salvador through the platform that powers Bitcoin Beach Wallet. The bitcoin exchange Bitfinex will also be the primary sponsor of the event, which is taking place in November. In order to develop a financial technology platform for the issuance and trading of Volcano Tokens, Bitfinex is collaborating with the government of El Salvador to create a platform that will be used by both parties throughout the process.

It was impossible to have anticipated in 2021 that a sovereign government would be using Bitcoin as their official legal tender. A significant shift was observed in the public's perception of the nation as well as its currency as a result of the action. Currently, El Salvador is making progress on its way to becoming one of the first financial inclusion models in Central America and becoming the Singapore of Central America.

Nonetheless, Bitcoin has proven to be a very convenient exchange medium that can support millions of transactions each day, proving to be a very successful exchange medium. This conference will take place at the Crowne Plaza convention center in Orlando, Florida over the first two days. During the presentation, speakers will discuss the most recent advancements in the Bitcoin ecosystem from a technological and economic perspective.

Among the most significant presentations of the conference will be that of the Bitcoin Core engineer Jon Atak. Atak recently won a $50,000 grant from the Human Rights Foundation, and his presentation will be an important contribution to the technology field.

Another significant speaker at the economic conference will be Senator Indira Kempis of Mexico who is scheduled to deliver the keynote address. Kempis is known in the past for her advocacy for central bank digital currencies (CBDCs), which have been in the news for quite some time. Her effort to legalize bitcoin in Mexico, which made headlines globally, was another remarkable achievement. 

The Crypto Environment After Conference


The cryptocurrency market is presently undergoing a turbulent phase. As far as market conditions are concerned, the current market environment is by far the most severe crypto winter in history. As risk assets declined overnight, bitcoin (BTC) reached new weekly lows on September 28 as the price declined throughout the entire week.

There is a strong correlation between the value of digital currencies and the stock market in the U.S., which has prompted investors to pay close attention to monetary policy for this year. There has been a surge in interest rates along with pressure applied to the S&P 500 and the tech-heavy Nasdaq, which has influenced other risky assets, such as cryptocurrencies, as well as others in general.

As a result of this year's interest rate hikes, the United States Federal Reserve has not made any commitments to stop them yet, although this year's rate hikes have exerted pressure on risk assets such as cryptocurrency in general.

At the same time, investors are closely watching the U.S. dollar in order to determine how it will perform. It has been estimated that the dollar index, which measures how the greenback is performing against a basket of currencies, has increased by more than 18% so far this year.