Universally governments operating money as commodity (1)

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UNIVERSALLY GOVERNMENTS OPERATING MONEY AS COMMODITY (#UGOMAC) Author: Abraham Paul. P Thiruvananthapuram, Dated 02 January 2017 Short link: http://wp.me/p1ZsI2 - Yn Introduction. Demonetization is Archaic. Governments collecting of TAX o n rightfully hard earned Money of ordinary Citizen is Mediaeval. No one can stop advancement of Technology and the disruptive No one can stop advancement of Technology and the disruptive paths it create. However, there has to be a way to tackle it and half baked solutions like Demonetization are of no help. The way to go is to walk, and walk the full way with disruptive technology converting it an advantage. Forewarned is forearmed. What hurts Economy most is not Black Money alone but also large portion Money being guzzled up and converted into its virtual form by f ast mushrooming e -money businesses creating parallel economy of a black hole of Virtual Money draining Banks hurting liquidity Everyone, right from top, and strangely supposed to be renowned economists, and top, and strangely supposed to be renowned economists, and the Media 24/7 talk relentlessly mixing up disparate issues viz., #Demonetization, #BlackMoney and lately to forget Cash by moving over to #CashlessSociety by everyone using Credit/Debit Cards, e- wallets of Private e - Commerce companies, Mobile wallets etc., wi thout fuss about money in their hands or in their bank accounts.

Transcript of Universally governments operating money as commodity (1)

Page 1: Universally governments operating money as commodity (1)

UNIVERSALLY GOVERNMENTS OPERATING MONEY AS COMMODITY (#UGOMAC)

Author: Abraham Paul. P

Thiruvananthapuram, Dated 02 January 2017

Short link: http://wp.me/p1ZsI2-Yn

Introduction. Demonetization is Archaic. Governments collecting of

TAX on rightfully hard earned Money of ordinary Citizen is

Mediaeval.

No one can stop advancement of Technology and the disruptive No one can stop advancement of Technology and the disruptive

paths it create. However, there has to be a way to tackle it and half

baked solutions like Demonetization are of no help. The way to go is

to walk, and walk the full way with disruptive technology converting

it an advantage. Forewarned is forearmed.

What hurts Economy most is not Black Money alone but also large

portion Money being guzzled up and converted into its virtual form

by fast mushrooming e-money businesses creating parallel economy

of a black hole of Virtual Money draining Banks hurting liquidity

Everyone, right from

top, and strangely supposed to be renowned economists, and top, and strangely supposed to be renowned economists, and

the Media 24/7 talk relentlessly mixing up disparate issues viz.,

#Demonetization, #BlackMoney and lately to forget Cash by moving

over to #CashlessSociety by everyone using Credit/Debit Cards, e-

wallets of Private e-Commerce companies, Mobile wallets etc.,

without fuss about money in their hands or in their bank accounts.

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But then what they all seem to forget is that Debit cards, Mobile

wallets etc,. need be filled and refilled with Money into it in the first

place to get service, and from where people will get Money for that.

Simple, it can happen only if the income and earnings of

everyone also paid and received and spend as Money in Virtual form

(e-money) through their usual sources. The way to do it is by

in India) also in India) also

create all forms of money in virtual form; and certainly not by any

Private e-Commerce Companies.

End of the day it simply means that in addition to printing and

releasing currency notes, RBI shall also shall create Money in

Virtual form and also create discrete open valued e-Wallets, tamper

proof, fail proof, cannot be duplicated, hacked or disrupted in

anyway by any one; each of it with parameters that can be

programmed and altered individually and made available to every

one as its Users

any form of Money transactions happen ie. Banks, Institutions, any form of Money transactions happen ie. Banks, Institutions,

Organizations, Vendors and Merchants, Shops etc,.

These e-wallets each with discrete number and identification code

linked with Aadhar (Indian UUID) of every Citizen will become part

of a Real/Virtual bank account of their choice that can be

filled Virtual Money as Data from One paisa to any amount and

acquires one lump some value in the hands of the Creator, the

Banks and every POSs and in the hands of every user. The lump

some value of the e-wallets get altered as e-money received and

spent from it thus making the denominations of Money also

Virtual. Virtual.

Thus RBI will have an e-Wallet, its value in e-Money is the sum total

value of e-Money at any point of time is the value of entire e-

Wallets RBI has issued and in circulation. Thus the total sum of the

Virtual Money plus Real Money in the Country always remains

constant. It is thus RBI is to be made the sole Creator, Custodian,

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Operator, Regulator and Controller of Virtual Money in any form in

the Country. The value of e-Money in the Users e-Wallets get

modified every time a request for transaction by any User through

their Bank or other Media.

1. Inclusive growth:

Please see a paper pubPlease see a paper pub

comprehensive and consolidated ideas and proposals to realize

Financial Inclusion and Microfinance support to people especially in

the lower social-economic strata in the link wp.me/p1ZsI2-4g

The above paper describes in detail how Money through Mobile

(mTm) envisage wide range of products and service to cater for all

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sorts of payments in every Points of Sales & Services with money in

digital form for everything, anywhere and everywhere, exchange of

physical money to e-money and vice versa.

Further, Money through Mobile (mTm) can enable smooth

changeover to Cashless Society using UUID for all purposes and

to roll out various schemes such as DBT etc., with exclusive Virtual

Banks as Payment Gateways, Universal, simple and easy to use

applications, 24/7 service from anywhere any time, any amount and

Digital Connectivity in remote areas with GPS via Satellites.

2. Power and Perils of Money going Virtual.

and Perils of Money

-Ku in which I had explained

in detail the urgent need to bring in regulation to prevent fast

mushrooming Private e-money management companies guzzling

liquid Money draining banks and create parallel economy of

As e-money has to be in virtual form, the way out is for the Banking

Industry itself handle it so that liquidity is not lost. Please see in

how the Real and Virtual

Money Cycle looks like with RBI becoming the Creator, Custodian,

Operator and Controller of Money in its Real and Virtual forms.

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As can be seen in my paper, to move over to Cashless society by

using Debit cards, Mobile wallets etc., as of now people

need Physical Money in hand or in Bank account in the first place to

charge and recharge Debit cards, Mobile wallets etc,.

A presentation on this is in the link: wp.me/p1ZsI2-M6

In order to make it fully Cashless Society and also to regulate and

harness huge amount of Virtual money involved, the way out is that

RBI shall be the sole Creator, Custodian, Regulator and Controller of

-Wallets and -Wallets and

make it available to all Citizens in India, like Aadhar.

Reserve bank of India shall generate Money in Virtual form instead

of printing Currency so that everyone get all sort of income and

earning in their e-Wallet in the form of Virtual Money through Banks

and thereby the liquidity is maintained. This will also enable RBI to

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create even Billions worth of e-money in its e-Wallet and distribute

it to e-Wallets of Banks within few hours without the sort of fuss

seen now.

As RBI remain the custodian of e-money, every e-money transaction

in the e-wallets everywhere can happen only with authentication of

RBI like in the case of NEFT & RTGS. Hence, RBI will have full

statistics of the e-money movements in Virtual form anywhere and

everywhere.

3. UNIVERSALLY GOVERNMENTS OPERATING MONEY AS

COMMODITY (UGOMAC)

How to make Countries Tax free regimes.

With adoption of the above arrangement of Real and Virtual Money

cycle, Governments Universally across the World can use Money as

a commodity (an idea first of its kind ever) to generate much needed

enough income for its needs by levying a small percent, enough income for its needs by levying a small percent,

say hypothetically at 1% on every money transactions, both Virtual

and Real.

For example:- There are above Billion Mobile Phones in India. Say a

modest amount of Rs.15000 transacted by every phone on an

average per month makes it Rs.15 Trillion per month. Money is

dynamic and get re-transacted about 20 times a month making it to

Rs. 300 Trillion ie. Rs. 3600 Trillion annually. 1% of it is Rs. 36

Trillion which is about twice the total outlay of

Central budget.

This is just about with the income from Money through Mobile

alone, and it will be hundreds of Trillion with 1% levy on all other

forms of Money transactions, such as for Goods & Services, Real

Estates etc,. Basically there will be no other form of Taxes, people

have to pay, Direct, GST or else, thus making India a Tax free

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regime. Concepts are important, nut and bolts can be added by

experts.

4. The efforts involved to move over to fully Cashless

Society?

Naturally a question arise how will Government make everyone use

ever payment in Cashless payment route. This can be realized by ever payment in Cashless payment route. This can be realized by

Government make it a rule ring that in every place Money

transactions happen shall be treated as Point of Sales / Point of

Service and Money transacted in both Physical and Virtual form

shall be done only through that. Now if anyone transact Peer to Peer

or Peer to Business or B to B in Physical Money other than through

POS to avoid levy on its transaction, it has to ultimate reach a POS

for getting Goods and Service and will come under levy payment in

the hands of the receiver. This is ensured as the POS can be made

to accept Money only in Virtual form.

However there shall be facility to accept Money in physical form and However there shall be facility to accept Money in physical form and

exchange it to Virtual form and vice versa to complete the

transaction inviting levy twice. This will work as incentive to

stick to Cashless mode.

4.1. Money in Physical and Virtual form can co-exist for

some more time.

If someone want to use Physical Money at a POS, it has to be

exchanged into Virtual Money first. Facility shall be always available

to exchange Physical Money into Virtual Money and vice versa,

always inviting levy in each transaction; thus Virtual Money always inviting levy in each transaction; thus Virtual Money

transactions become cheaper and this incentive help enhance

Cashless mode. Even the Black Money hoarded will have to go

through a POS some where some time paying levy and get into the

statistics of Government.

4.2. The base becomes broader like never before.

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Thus as everyone everywhere pay the levy on money transactions

both in its Physical and Virtual form; the poor spend less and pay

less; the rich the other way around; the base is widened to entire

population and revenue generated will be too huge to take care the

needs of Central and State Governments together with no other

Taxes, Direct or else, GST etc,. As the levy rates are program

controlled it can be varied as decided by Government from time to

time according various parameters such as user based, location

based, status based, special needs based etc.

4.3. Less dependency on FDI.

Once Governments developing countries are able to generate enough

income to cater for all its needs, dependency on FDIs diminishes

considerably.

4.4. Easy and quick to apply changes in emergent

situations.

Another important aspect is that the income generated can be need

based and can be varied as needed from time to time in case of

national calamities, poor or failure of monsoon, famine, etc., and

revert back at will just with the press of a button.

5. Eradication of Corruption and Black Money and Control

on Terrorism activities.

As RBI being the creator and custodian of e-money entire statistics

will be available and can be monitored to prevent Corruption and

Black money. Same way flow of Money into wrong hands can be

prevented the one and the only sure way to restrict terrorist

activities in the Country.

6. Pre-requisites.

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India should have its own INTERNET CLOUD and INTERNET

EXPLORER Servers.

6.1. India INTERNET CLOUD and indigenous Servers.

Last but not the least, in order to get all these done it is critical to

have an INDIA INTERNET CLOUD and own Explorer servers sitting

within the country are a must lest the entire economy can grind to

halt if solely depend on Explorers abroad happened to be hacked or

switched off due to any reason beyond our control.

6.2. Digital connectivity every where. Extending digital

connectivity needed for this every where laying Optical cables will

take time. The way to go is to implement these in places where

digital connectivity available and remote areas are connected to

Central Servers with GPS over Satellite links.

Hurrying to get these done without the perquisites such as above

and others will be like putting the Cart before the Horse.

Please see my blogs on Digital India: Views, opinions, and new

proposals on various Technology & Social and Community affairs.

http://wp.me/p1ZsI2-J5

____________________________________

Author: Abraham Paul P.

Free lance Telecom and IT Consultant, Ex Owner FCOMNET India & UAE / Vice

President Technical Sales, SPCNL SIEMENS ICN Germany / Director Trg. SC & TS President Technical Sales, SPCNL SIEMENS ICN Germany / Director Trg. SC & TS

SIEMENS ICN RHQ UAE / G. M & SMT TBG BPL Mobile India / Telecom Engineering

Service, (I) DOT India. Tweet @pa_paul

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