Blockchain Ecosystem Could Help Accelerate Governance: CoinSwitch CEO
The rise of cryptocurrencies and their underlying Blockchain technology has generated a great deal of interest in the new industry.
Still, several questions are not readily available.
For example, some investors are concerned about regulations (when and in what form they will come) and the underlying asset that is driving this sector.
CoinSwitch co-founder and CEO Ashish Singhal answered several of these questions in a recent interview. He stressed that cryptocurrencies and the entire blockchain ecosystem are trying to create a new Internet, which many call Web3, just like Google and Microsoft helped create Web 1.
Talking with him economic timesMr. Singhal said that India "definitely needs" cryptocurrencies as the companies running this ecosystem will dominate the world for the next 10-20 years. He added that the crypto industry could also help solve some real problems or mitigate them.
Singhal added that blockchain could help speed up governance and service delivery. With blockchain, a government official can easily verify ownership of a vehicle or property by simply scanning the QR code on related documents.
But what about concerns related to the underlying value of cryptocurrencies?
RBI Governor Shaktikanta Das has already saying that these digital tokens threaten financial stability. Referring to the Dutch tulip bulb market bubble in the 17th century, he warned investors, saying that cryptocurrency "has no underlying, not even a tulip."
Singhal said that the underlying value of cryptocurrencies lies in the use cases.
For example, if we were to launch an online business 15 years ago, we would have required infrastructure, including the purchase of servers and office space.
Players like Amazon then offered to host servers for a price, and the need to set up individual servers was reduced.
Similarly, the crypto industry is trying to create a network of computers that could help host new-age businesses online. However, in this industry, everyone who is part of the blockchain ecosystem benefits, not just the Amazons, Singhal said.
CoinSwitch's CEO also said that there could be no blockchain ecosystem without crypto because cryptocurrency is an incentive for the vast network of volunteers who have raised resources and invested time to verify every transaction on the network.
If these volunteers withdraw, the verification process will go into the hands of a few players "who benefit from that ecosystem, and then we go back to the system that exists today," he concluded.
(Disclaimer: Coinswitch is an advertiser on the NDTV network)
