EY Global Innovation Leader in Blockchain Thinks Bitcoin is of No Real Use to India
EY is one of the global leaders in the auditing sector and have invested heavily in the blockchain space. Recently, one of the executives of the firm was on a visit to India, the country which is on the verge of regulating cryptocurrency use.
During his visit to the country, the EY executive Paul R. Brody met several government officials to get a grip on things and the future of cryptocurrency use in the country. The observations made by the executive might come as a big blow for most of the crypto enthusiasts in India, as Paul does not see any great future for the crypto use or adoption. He believes in the current scenario, Bitcoin would just be another foreign currency and sees no practical use of the coin.
Paul Broady Is pro-Blockchain
Paul describes himself as,
“responsible for driving EY’s initiatives and investments in blockchain technology across consulting, audit, and tax business lines.”
During his recent visit, he answered a few questions to the Forbes India on his observation on crypto adoption in the country and made quite scintillating remarks.
Here is an excerpt from the interview,
“I don’t see any reason why people should be prohibited from owning them. I see bitcoin as just another ‘foreign’ currency — only one without a country. That being said, I see no practical use for bitcoin or nearly any other cryptocurrency.”
Paul is a big fan of blockchain technology and believes that it can impact the business around the world in a big way. However, his enthusiasm is not the same when cryptocurrency is the topic. Paul says cryptocurrencies are not a great entity for businesses, as most of the operations are conducted in local fiat. Thus, stable coins based on local fiat can definitely see a much wider use than any other cryptocurrency.
Bitcoin's Inflation Resistance Model Could Be A Roadblock In Its Mass Adoption
Bitcoin is often projected as an
“inflation resistant currency model”,
which Paul believes is the biggest hindrance for bitcoin being adopted in large scale businesses. He explains that high-inflation rates have never troubled any mature economy. On the contrary, a deflationary model like Bitcoin can run havoc on economies due to its limited supply.
He concluded that large scale adoption of Bitcoin can actually be damaging to the global economy.
Thus, Paul is more Blockchain oriented and sees the potential in its real-world use cases, where he believes that Blockchain based technology can help eradicate many basic problems in the current system, while crypto might not be as useful.
“While there are some regulatory issues, our discussions with government agencies in India suggest that they are ready and interested in the use of this technology for business applications.”
India And Its Regulatory Dilemma
The Indian government has been on the verge of finalizing the regulatory framework for crypto use in the country. The final report is yet to be published, however, after the Supreme court's four-week ultimatum, the panel set up to form the laws has assured the honorable supreme court that the framework will be completed in due time.
Earlier the Reserve Bank of India had banned the use of crypto in the financial sector, which was challenged in the court by a petitioner claiming the ban to be unconstitutional.
Whether the outcome of the regulations would be on the lines of EY executive prediction, only the time would tell. However, the use of crypto is not just limited to businesses as Paul's analysis was roughly based on. Apart from the business use, crypto can see its use as a daily driver, a medium of exchange, and entity to trade with and in some cases even act as a store of value.