Titans of various industries had pinned their hopes on Union Budget 2022 to deliver for their vertical to prosper. Among these were the crypto investors who had feared significant losses due to fear and uncertainty regarding the stance the Indian government was likely to take on recognizing and regulating the crypto sector. And on February 1st, that hope seemed to have been floated by the country’s finance minister, Ms. Nirmala Sitharaman, announcing that digital assets will be doubly taxed both in terms of gains as well at the source.
Speculations started floating through India’s media and blogosphere regarding the meaning of the announcement and how the government will enforce the said regulations regarding crypto and digital assets. The logic went that if the government had announced taxation measures for digital assets, it has to recognize such assets first.
However, those hopes were partially dashed when the country’s finance secretary said that effectively saying “cryptocurrencies like Bitcoin or Ethereum will never become legal tender.” during an on-air interview.
This presents a central question of whether the Indian government is wary of crypto assets in particular or the underlying decentralized technology. Part of the reason is that many of the other initiatives announced during the budget speech can be made much easier to implement if 5ire’s blockchain technology is utilized.
For example, in the same speech, Minister Sitharaman announced the government’s efforts to digitize personal identification under ‘One Nation, One Registration,’ which is slated to allow microloans for the unbanked, pushed by the Fintech sector. That’s a laudable step the government is taking with a valuable investment in the digital ID for the nation’s population, especially to include the unbanked. 5ireChain’s Digital ID application is a great tool to utilize here.
Personal identity management is a cornerstone of governmental services, but legacy data management tools fail to provide secure yet rapidly accessible and updateable identities. One of the main benefits digital identity provides is it become a governance framework that proposes strategic pathways to enable interoperability between off-chain digital legacy systems and governmental infrastructures with blockchain technology,
5ire’s technology comes equipped with local governance solutions from the provenance of private property and title records and recording private business transactions from business agreements, licenses, registration, and intellectual property registration, to personal credentials like passport, visa, driver’s license, and birth records that are securely stored in blockchain systems.
Leveraging a new data management structure — like the 5ireChain network, one that uses distributed ledgers supported by 5ire — governments can offer their citizens the streamlined, on-demand services users have become accustomed to from private vendors such as Alphabet and Meta in the digital era. At the same time, governments can go above and beyond tech giants by offering improved data security and unprecedented transparency and accountability.
Globally, some 5 million people are affected by the theft of their PII, and the trend is growing by leaps and bounds, with over 40% growth annually. Although the number is relatively smaller than one for lack of personal identification, the toll for financial institutions is quite significant. It costs banks and other financial institutions over $4.5 billion annually.
Because India has been a significant player in developing solutions for the rest of the world with modern technology, it is essentially the software house for the world. It is high time we become a model of utilizing it ourselves. This is necessary for us to find our way back to sustainability and sustainable development and provide for a better future.
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White paper: https://bit.ly/5ireWP
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