Wednesday, July 26, 2017

Bitcoins potential tool to boost digital economy but fraught with risks: PHD Chamber

While releasing a survey study on Industry Perspective on Bitcoins, Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry said Bitcoins could act as a potential transaction and payment mechanism for businesses given proper monitoring and regulation of the currency.

However, absence of the information about counterparties in the bitcoins transaction is a major drawback and may lead to unintentional transactions such as money laundering, said Mr. Gopal Jiwarajka.

Bitcoins are fraught with risks and not backed by any tangible asset but by sheer demand, he said.

PHD Chamber of Commerce and Industry organized a roundtable discussion on Industry Perspective on Bitcoins to know about the industry perspective about the prevalence of bitcoins in the system.
The survey study released cited that though lot of awareness about bitcoins is there in the system but there are hardly any users of this formula.

The prices of the bitcoins jumped from USD 100 in June 2013 to USD 3025 in June 2017. The number of bitcoins increased from 5 million in 2010 to 17 million in 2017.

Bitcoins are a fascinating instrument however highly volatile and susceptible to high risk makes it a vulnerable instrument, said Mr. Jiwarajka.

Bitcoins have gained tremendous ground on global financial investments in the recent years, he said.

Proper vigilance and directives to regulate the crypto-currency could boost the digital ecosystem in the country, said Mr. Jiwarajka.

Low transaction cost for bitcoins makes it a highly demanded instrument for digital transactions in the recent times, said Mr. Gopal Jiwarajka.

There is a high possibility that the world of bitcoin may expand, on the back of greater acceptance rate for bitcoins in the recent years, said Mr. Jiwarajka.

Eliminating the risks and having a regulatory mechanism could make this a viable option for promoting it as a digital currency in the country, said Mr. Gopal Jiwarajka

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