In this episode of #KuveraInsights, Gaurav Dahake, CEO, Bitbns; Advait Palepu, Senior Correspondent – Bloomberg Quint and Gaurav Rastogi, Founder & CEO – Kuvera.in discuss the mystery around bitcoins and make sense of the bitcoin world as they deep dive into the legalities and long term prospects.
Q: What makes bitcoin and investing in them so polarizing as a subject?
– One of the most polarizing tech innovations in the last decade
Q: Why are some people vehemently trying to run ‘bitcoin’ down while there is an exact opposite number of people who are willing to invest in them despite the legalities involved atleast in some countries?
– Most people do not really understand the technology itself
– Agendas have led a lot of opposing voices for BTC’s
– BTC resembles an additional ‘store of value’
– Varying Jurisdictions view the opportunities differently
– Rupee has depreciated greatly when compared to USD and USD in turn has depreciated in value when compared to Gold or BTC’s
– Some of them hedge this value by investing in Gold
– Some have similarly chosen BTC as a mode of investments
Q: What has been RBI’s stand on bitcoin and how do you see this playing out in the future?
– Money laundering, criminal activities etc have been the main issues regulators want to keep a tab on and prevent via bitcoins
– AML and KYC will help covering this up
– Most bitcoin fintechs would rather want to be regulated to ensure smooth business than staying outside the purview
Q: Anonymity and decentralization though is the primary crux for the acceptance of bitcoins
– IP tracking helps cover a lot of issues especially with compliance
– These are not data that regulators want to use for anything other than during a crisis
– Strategy on who should be the regulator, still prevail
Q: Questions still prevail around whether it is a Currency or a Security Asset? – So, then who should be the person regulating it?
– Block chain as a technology is already being accepted as a platform even by Niti Ayog in a big way
– Regulation can be different depending on the application / usage
– Segregating crypto within it’s use cases and splitting regulatory authorities for this could be a possible way forward?
Q: Will the inherent quality and advantage of a ‘utopic world currency’ be lost with overregulation?
– Most exchanges have realised there are two types of users
– A small group are those who don’t want regulation and are looking for an ecosystem without one
– There is another that is looking for an additional asset class and are keen to remain within the ambit of regulation
– This second class of individuals are many and big enough to have a test case to launch under a regulatory environment
– Banning BTC platforms led to a lot more individuals transacting outside the purview of regulations
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