Letters to the editor dated March 31, 2021

With reference to the editorial “Crypto reality” (March 31), the phenomenal growth of digital and information technology sectors established the fact that, the asset-lite model corporate structures, through their proper channelisation of revenues into productive investments, achieved substantial enterprise valuations. Any investment should ultimately culminate into generation of liquid assets of the corporate entity. The digital currency investments is one such avenue to bootstrap for the long-standing liquidity of the corporate. With properly structured regulatory mechanism addressing all the envisaged risks, this innovative method, could be a shot in the arm of the growth oriented corporates.

Bengaluru

Apropos your editorial ‘Crypto reality’ (March, 31), it is doubtful whether a blanket ban on cryptocurrencies would stand judicial scrutiny, as the earlier embargo by the RBI on ‘crypto purchases through Indian banking channels’ was struck down by the Supreme Court in March 2020, as ‘a disproportionate regulatory action’. Further, a total ban may only drive such transactions underground, or abroad.

Instead, the government can opt for strict regulation of such dealings, with a rigorous application of KYC norms.

Simultaneously, if the RBI speeds up the introduction of CBDC, that would act as a counter to the cryptocurrencies, with the former backed by and having the same value as the underlying ‘Rupee’, unlike the latter lacking intrinsic value, unbacked by any tangible asset. It is true that savvy investors would continue to trade in the cryptos to take advantage of their price fluctuations.

The best way to deal with them would be to closely monitor and tax such transactions, bringing in revenue to the exchequer.

Chennai

While cautioning that “Covid resurgence is ‘scary and intensive’” (March 31) NITI Aayog Member (Health), Vinod Paul also stressed the need for “Covid-appropriate behaviour.”

The first lockdown of 68 days last year showed that it contracted economic growth enormously but failed to strike at the root cause, which is lack of proper use of mask and social distancing.

The same thing will happen if second lockdown comes. Why?

Two days back I (85+) went to a reputed hospital for corona vaccination.

While waiting for my turn I noticed that at a short distance two uniformed employees of the hospital were busy in their talk with masks merely hanging down their ears.

The security guard asked them to cover their mouth and nose; they merely laughed at him and continued their chatter.

They were responsible technical staff of the hospital, not unaware public. Will lockdown discipline them or the hospital administration?

Pune

With reference to the column, ‘Sheer poverty of policy’, such adverse times not only test the core strength of our society but nations as well and it is highly unfortunate that the gulf between rich and poor have only widened further.

Though direct cash transfer, foodgrains distribution and jobs under MGNERGS were the saving grace but now the time has come to think beyond that and treat every individual with dignity and respect.

For that to take place social security norms like those in the US and creating a comprehensive database for all informal sector workers, including migrant workers is of utmost importance.

As they say every crisis is an opportunity in disguise and we can not let this crisis go without course correction.

Noida

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