First let me clarify my understanding of cashless transaction and economy. When one pay by ATM/Debit/Credit Card or Cheque, then that is cashless transaction. When Cash is COMPLETELY out of the ECONOMY of a geographical area then it is (COMPLETE ) CASHLESS ECONOMY.
#1) We can have similar accountability to govt in Soft Earning Unit (SEU) also. My proposal is maintain everything as such just remove the cash completely from the system.
#2) SEU must statutorily be exchanged for "value" . If someone finds SEU is of lesser value, then instead of keeping it with earning keeper, one can invest in SEU of other geographical area or precious metals etc.
#3) RBI can regulate SEU also. IMHO, please go through the paper and slides on my blog http://samirsrivastava.typepad.com/ carefully. The thing which you described as magic cannot happen without HELP from customs/ govt officials. If hard currency is gone, then these magic will not happen. Moreover if you want when the internet traffic goes out of the country to "suspected web-sites" that can be avoided ISP need to implement policies.
IMHO, The parallel economy (due to un-traceability of hard currency) is biggest hindrance in making effective economic policies. In SEU you can make effective economic policies.
I am refraining from commenting on other political noises.
On Wed, Jan 4, 2017 at 8:47 AM, Sarbajit Roy <firstname.lastname@example.org> wrote:
Certain people (fools) are busy promoting cashless transactiions and
removing currency totally from the economy, without understanding the
#1 CASH / CURRENCY is a measure of the liability the Government has to
the people of India. In simple terms.CURRENCY is a measure of how
much the Government owes to the citizens.Removing Currency implies
that Government owes people nothing and can do what they want and
print money at will.
MORAL -> FASCIST Govts desperately want currency and autonomous
Central Banks eliminated.
# 2 CURRENCY Notes must statutorily be exchanged for "value" - ie.
valuable coin. Previously this was gold, now its a mix of metals like
copper and stainless steel. The difference between the intrinsic value
(ie. metal price in open market) of the coin and its face value is the
Govt's tax (called "seignorage"). Typically whenever seignorage
exceeds 25-30% the public rejects paper currency in favour of stronger
currencies and there is monetary inflation. At present India's
seignorage is 70%. No wonder the India Rupee has depreciated 100%
against Dollar because smart Indians are "exporting" their value.
MORAL -> A Rafale fighter jet costs 2x what it did during Congress
time because we now have a chaiwala as PM instead of a former RBI
# 3 If there is no currency, then there is also no need for RBI (whose
only role is to regulate currency and money supply). If there are no
Indian currency notes then people will devise ways and means (also
called Internet APPS) to ensure that transactions take place on
foreign websites in foreign currency but goods are "magically"
delivered in India. This is already happening Udtaa Punjab.
MORAL --> Why would anybody pay in Indian rupees on Indian websites if
a foreign supplier will anonymously deliver the goods to you without
bill after you have paid in dollars or Yen or BITCOIN ? The whole
online Pharmacy racket works on this principle.
WWW : http://indiaagainstcorruption.