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Northstar
"Cashless" was always a trap, anyway. Hope the country won't fall for it.
Unlikely in India and cash is never going away here. What I find questionable is some vendors not accepting pay on delivery. Sometimes it's impossible to make digital payments as the payment gateways are just too busy and does not respond in time. I've blasted these people when I could for imposing payment methods that they have no right to do.
The reason UPI gets bigged up is the 18 countries that have Vostro accounts so the German foreign minister can buy something when she is here with her card issued in Germany. There is interest from 60 other countries to also adopt UPI. This then is touted as India playing a leading role in 'de-dollarisation'. That word does not exist as yet.
Digital is more needed in western economies or any economy that is in trouble or close. Where the compulsion of govt to do away with cash and impose negative interest rates is more. Trying to put payments above 1,000 Euro in some grey zone if it's done in cash and not digital. They talk more about central bank digital currency there. CBDC is a govt counter to bitcoin.
Digital with all its intrusive controls is a commie solution to a mess created by rampant capitalism or bad fiscal management.
Where do you see rampant capitalism or bad fiscal management bankrupting things in this country? Is our public debt to GDP at some unmanageable level or likely to get there soon? What is the possibility of zero interest or negative on your bank deposits anytime soon?
Take the case of bank failures. Discussed this with someone here back in 2015, can't find the discussion, don't remember who it was, but someone who'd been in the banking sector for eight years and what he said stuck. He was saying the odds of a cascading bank failure in India are minimal if you look back through history. Your money is safer in an Indian bank than an American one.
At least 75% of the economy is internally generated. Meaning it is isolated from external shocks. There was no contagion here after the 2008 financial crisis. The same is the case even today. Western economies are much more integrated with each other so dips in one spread to others.
Covid response fiscal stimulus. See below where India is compared to western countries. At the time the Economist was saying India is stringent but also stingy. Well, today after they printed like drunk sailors and are the ones facing inflation problems. Not us.
Nah, this place has always been highly regulated unlike abroad.
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