Decrypting the Cryptocurrency
Reporting from the Lok Sabha, Ananya Haraprasad compares both sides of the “coin”, regarding the feasibility of cryptocurrency in India.
The world has been witnessing rapid growth in every industry. We live in a time where it takes just a few years for some entity to be considered outdated. The fields of communication and Information Technology (IT) have broken quite a few conventions, with the advent of internet in everyday life. As the number of online users continued to increase exponentially, facilities for the ease of transaction and enhancement of user experience started mushrooming in every corner. The introduction of cryptocurrency to the world was a result of the aforementioned developments. Cryptocurrency is a digital entity that is used as a medium of exchange, which takes the help of cryptographic techniques to create a secure digital space for financial transactions. Satoshi Nakamoto, the founder of Bitcoin, aimed to pull down the idea of internet censorship by forming a decentralised Domain Name Server (DNS). The reporter feels that the primary intention for the introduction of cryptocurrency was to create an online transaction zone away from the crutches of banking and governmental institutions.
In the Indian market, bitcoin transactions started taking place around the year 2012 and have been climbing the economic ladder at a modest pace ever since. The 2016 demonetisation seems to have served as a jolt, making more people explore fiat currency as an alternative model. Despite that, India contributes less than two percent of the total global cryptocurrency market. The cause of the tiny role played by such a large economy seems analogous to the high price of cryptocurrency & the government crackdown led by the Reserve Bank of India (RBI). Arun Jaitley, the current minister of finance and corporate affairs, had once mentioned that the going will only get tougher for cryptocurrencies, its exchanges, and its investors.
Despite the seemingly secure hash system, cryptocurrencies are not as reliable as they claim to be. Security threats are a major challenge because, it is feasible for hackers and malicious users to break into the system and create the required amount of virtual currency themselves. Considering the economic perspective, its non-adherence to the demand and supply concept questions if it fits in as a viable option. Most fiat currency systems are related to some real world monetary systems and thus, they may affect the demands and supply facilities of real world money. On the other hand, there exist platforms that enable users to exchange their virtual currency with real currency, which will increase the demands on real world currency. This kind of a fluctuation will eventually take a toll on both the virtual and monetary systems. Apart from the aforementioned risks, money laundering is very likely to rise with the use of virtual currency, because getting them the regulation they deserve looks like a far fetched dream. Virtual money allows the users to dodge income taxes by acting as an easy source of investment.
The lack of a proper legislation is evidently a primary area of concern. However, it can also be noted that solving this one problem can eventually pave way for Bitcoin and other cryptocurrencies to hold a strong share in India. When legislation comes into play, the state could lay down appropriately strict guidelines for the exchanges and limit the sources of procurement. Regulated exchanges would directly reflect on the transparency and accountability, the two major constraints for those wanting to invest. Security concerns can be addressed by an appropriate team and with that, a middle ground is something that is definitely achievable.
If the centre works towards bringing in a regulatory framework for fiat currencies in the union budget, it would indeed clear the air and result in a safely digitised India.
Sources:
[1] https://www.researchgate.net/publication/324770908_The_Growth_of_Cryptocurrency_in_India_Its_Challenges_Potential_Impacts_on_Legislation
(Edited by Harsha Sista.)
A Mud Hut in Cherrapunji
Vaibhav Joshi, reporting from the Lok Sabha, discusses the fundamental flaw in the Women Reservation bill originating from misguided comparisons being drawn from the success of reservation in the Gram Panchayat.
“The Single Most exciting thing you can encounter in government is competence, because it’s so rare.”
- Daniel Patrick Moynihan
In a small village on the outskirts of Bikaner, located within a Lilliputian settlement of farmers, lies a family of 5 that sleeps peacefully in spite of lacking 2 pennies to rub together. The peace originates from a shelter that allows them not to be left staring at the stars on a clear night, but provides warmth enough to let them survive through a frigid December night.
Similar is the shelter of a family, much like the first one, that resides deep within the vegetation of Cherrapunji. 2 days into getting their mud hut rebuilt, the 3 kids (barely 10 years of age) are seen assisting their parents in rebuilding the roof that melted away in the storm earlier that afternoon. If shifting to the far North-East from Central India wasn’t hard enough for the family, the denial of change in lifestyle wasn’t making it any easier. Such is the case when dire circumstances often lead to the captain of a ship overlooking certain circumstantial variables that could throw the entire crew overboard.
The Lok Sabha has repeatedly found itself in a similar predicament whenever the relation is established between the Women Reservation Bill and the reservation for women in the Gram Panchayat that exists as the 73rd Amendment in the Constitution of India. With debate in the Lok Sabha primarily stemming from the overwhelming success of the 73rd Amendment, the reporter feels that most of the vociferous advocates pushing the Bill have constantly sought assistance of the example of reservation in the Gram Panchayat and at the same time, have overlooked the disparities existing between most of the demographics of rural and urban constituencies.
The cornerstone of the Gram Panchayat model of reservation was the immediate need to uplift women by offering them positions of power in a system where those governing truly understood the needs of those being governed. Even though this model finds its significance in an urban scenario, the mandate of Lok Sabha far outweighs the mandate of Gram Panchayat. It would be a blunder to compare the responsibilities of a Sarpanch to the responsibilities on the shoulders of a Member of Parliament (MP).
With substantial issues ranging from finance to religion, competence and credibility become the primary factors of eligibility of women becoming members of the Parliament. The government should showcase its support in adopting a bottom-up approach for establishing equality by facilitating women with more comprehensive roles and a more thorough involvement in policy-discussion at an intra-party level first.
The Women Reservation Bill, although being given repeated importance, especially by finding itself in the manifesto of the ruling party, has constantly been shot down in spite of its majority in both the houses of the Parliament. With elections pulling in close, the possibility of the bill being introduced in the Lok Sabha, let alone being passed, seems bleak.
Prime Minister Narendra Modi, in first session of the Lok Sabha, explained the National Democratic Alliance’s (NDA) strong stance on women representation by enlightening the committee on the fact that the representation of women in the Lok Sabha, although lesser than the time United Progressive Alliance (UPA) was in power, has been the highest in the history of NDA. This statement could be taken at its face value if the NDA provides more tickets to women who have a firm grasp over their respective constituencies in the upcoming Lok Sabha elections in April 2019.
In the end, it is all about having a government with strong women representatives who will not have their competence questioned at every single step of their political career. The reporter strongly encourages the participation of women in India’s political narrative, but to be an advocate in changing the ratio of existing representation of women in the Lok Sabha, the top down approach could lead to catastrophic results. The brick house will eventually be built in Cherrapunji; but not by making a provisional one with mud first. The time and labour involved in perpetual repairs of the mud hut would engulf all the manpower responsible for laying the foundation of the brick house. And in case of a political scenario as sensitive as India, it is safe to say that a diversion would be equivalent to a halt.
(Edited by Harsha Sista.)
Thank You, Next
They know love; they know patience; they endure pain, time and again. Reporting from the Lok Sabha, Ananya Haraprasad wonders how to make this country a better place for homosexuals.
Last september was a major breakthrough for the Lesbian, Gay, Bisexual, Transgender, Queer, (LGBTQ) community in India. “History owes an apology to the members of this community and their families, for the ignominy and ostracism that they have suffered through the centuries”. With these words, Justice Indu Malhotra deemed the section 377 of the Indian Penal Code to be unconstitutional. One would have thought that after this Supreme Court verdict, the community would not have to live in fear--especially the fear of getting prosecuted just for being the way they are. Decriminalisation might definitely be a good start towards an inclusive democracy, but the ship has to sail much farther in order to achieve tangible change.
In India, no amount of news would do justice to the trauma that the LGBTQ community continues to face; more often than not, the diverse challenges faced by them are not exposed completely. On one side, we have progressive films and public discussions that try to normalise homosexuality; but the situation in the rural areas narrates a different story altogether. Lesbian women, in particular, are coerced to undergo corrective surgeries--mostly by their own family members. The refusal to oblige results in adverse after-effects in the form of physical abuse and mental trauma. The primary cause of this problem traces back to the lack of proper education with respect to homosexuality. The country is in dire need of a far-reaching framework that seeks to weed out the preconceived notions and replenish them with awareness and acceptance.
The Education and Training sector of India should formulate a comprehensive syllabus right from the school level, in a sensitive and age-appropriate manner. Employing teachers who are a part of the LGBTQ community would be an excellent step for the good of both the sides. Growing up in a normalised environment will automatically pave way for that generation to have an open mindset regarding the concept of sexuality. When it comes to making the already educated people tolerant, creative ideas and campaigns definitely offer a helping hand. For example, Hiker Chiu, a human rights activist from Taiwan founded an organisation called “Oii-Chinese” that aimed to end "normalising" surgeries on intersex children, promote awareness of intersex issues, and improve the government recognition of gender. His campaign “Free hugs with intersex” paved way to reduce human rights violations of the intersex community in Taiwan. Though the pride marches in India do create ripples of change, they should be extended to all parts of the country so as to have an after-effect of the desired magnitude.
In a society bound by a rigid set of socio-cultural norms that influence education, career and marriage, the lack of support from family or peers can prove to be a big blow, especially to the mental and psychological health of LGBTQ people. More often than not, their specific needs go unaddressed when accessing healthcare. Taking inspiration from the United Kingdom (UK), India could also appoint a national advisor to provide leadership on reducing the health inequalities that homosexuals face. Moreover, community building would prove to be an important part of improving their overalls. They help by creating a supportive, safe and educative space, access points for healthcare, awareness on healthy living, and as places for advocacy as and when required. Allowing them to connect with each other will break through their barriers to health and help in mutually strengthening their innate resilience.
Though the aforementioned points might not solve the entire problem, it is extremely important to realise that these are all the basic steps that would be required for any major bill to be passed for the welfare of the community. It is high time that the people in power realise this and take the necessary steps for the same.
Sources:
[1]https://www.theguardian.com/commentisfree/2018/sep/06/india-lgbt-homophobia-section-377
[2]https://www.ndtv.com/india-news/section-377-verdict-live-updates-supreme-court-to-deliver-judgment-today-1912100
[3]https://www.livemint.com/Sundayapp/sAYrieZdZKEybKzhP8FDbP/Being-LGBT-in-India-Some-home-truths.html
[4]http://www.oii.tw/about-free-hugs-with-intersex-movement
[5]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/721367/GEO-LGBT-Action-Plan.pdf
(Edited by Harsha Sista.)
The High Tides and The Loan Waive(r)s
Vaibhav Joshi, reporting from the Lok Sabha, analyses the ruins of India’s credit culture, realised by a devastating hit of loan waivers since 2008.
“Dekha aap ne? Dekha? Shuru ho gaya na kaam?”
- Rahul Gandhi [1]
These words enunciated by the President of the Indian National Congress (INC) on 18 December 2018, boasting the deliverance of farm loan waivers in Madhya Pradesh (MP), Chhattisgarh and Rajasthan, 3 days within coming to power in the respective states, still resonate in the ears of bank. The predictability of this announcement was certain, in light of the waived farm loans in Maharashtra and Uttar Pradesh (UP) in 2017 that saw farmers all across the nation, aspiring to be eligible for the same. What people fail to see, is the degradation of India’s credit culture hiding behind the mask of farmer suicides.
To analyse the fundamental problem with farm loan waivers, we need to look at the Comptroller and Auditor General of India’s (CAG’s) report [2] on the nation-wide farm loan waiver in 2008 under the Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS). Setting the government back ₹52,000 crore in taxpayer money, it still stands as India’s largest loan waiver of any kind till date. While the entire nation was busy commending the United Progressive Alliance (UPA) government for not just lending their ear, but also a helping hand to the farmers in distress, the underlying flaw in the waiver never got to see the light of the day.
Similar schemes have been repeatedly enforced by various political parties across the nation, like the ₹36,000 crore ‘Runa Mafi’ [3] in Andhra Pradesh and Telangana in 2014 and the ₹35,000 crore ‘Chhatrapati Shivaji Maharaj Krishi Shetkari Sanman Yojana’ in Maharashtra in 2017. In all the loan waiving schemes, the conclusion was drawn that exemption of loans had little or no effect on the farmer suicides, which were the very reason of enforcement of these waivers in the first place.[4] Letting this slide as ‘coming back to square one’ has often been often used to cover for the humongous sum of capital lost in not just waiving the loans, but also in advertising and implementing these schemes.
The sum of ₹36,000 crore waived by the UP government in 2017 has faced the most amount of backlash after the 2008 waiver, as Nine lakh farmers have filed their complaint on the departmental portal that they received the loan waiver certificate but the banks continued to deduct amount from their accounts.[5] Many cases have also been registered where the waived loans have been non-agricultural in nature, subsequently being in direct violation of the criteria of allotment. Tragic indeed, is the situation of farmers in India where the ones they should be having complete understanding with, their own community, has become the one that’s robbing them of their benefits.
However, this does not go on to justify the repeated claims of political parties prior to elections to waive the agriculture-based loans with schemes that are dealing permanent damage to the financial institutions of India. Some would also argue that these schemes, implemented in an utterly haphazard manner, are one of the primary reasons that the rift between the Reserve Bank of India and the Central Government is being dragged out for the longest period in country’s history.
These schemes not only increase the credit crunch born by the banks, but also the number of defaulting farmers. Seeing the loans waived for a certain slab of farmers, the ones capable of paying off their outstanding loans too, refuse to co-operate in hope of their inclusion in the said waiver. This can be regarded as gradual debasement of credit culture in its purest form, where schemes satisfying a political propaganda create distress in the financial institutions of the country. The burden of changing this culture, unbearable as it may be, lies on the shoulders of those who hold the keys to India’s future in April 2019.
Sources:
[1] https://www.youtube.com/watch?v=HHNZEc-Fpxc
[2] https://cag.gov.in/content/report-no-3-2013-performance-audit-civil-agricultural-debt-waiver-and-debt-relief-scheme
[3] http://pmjandhanyojana.co.in/ap-loan-rythu-runa-mafi-list-status-apcbsportal/
[4]https://www.thehindu.com/news/cities/Hyderabad/farm-loan-waiver-didnt-stop-suicides-completely-cess-study/article25902572.ece
[5] https://www.dailypioneer.com/2018/state-editions/9-lakh-complaints-on-farm-loan-waiver-scheme-in-up.html
(Edited by Harsha Sista.)