EY Executive Says Bitcoin Has No Practical Use in India
An EY executive who recently visited India and met with a number of government agencies has voiced his opinion about the future of cryptocurrencies in the country. He believes that bitcoin has no practical use, is just another foreign currency, and its widespread adoption could be very damaging to the global economy.
No Practical Use
Paul R. Brody, EYs Global Innovation Leader (Blockchain), has shared his thoughts on the future of the crypto industry in India after his recent visit to the country. EY is one of the worlds largest professional services firms and one of the Big Four audit firms.
Paul R. Brody, EYs Global Innovation Leader (Blockchain)
Brody describes himself as responsible for driving EYs initiatives and investments in blockchain technology across consulting, audit, and tax business lines. In an interview with Forbes India published Monday, he was asked: Do you see any future for bitcoin in India? The executive replied:
I dont 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.
He believes that the future of business transactions on the blockchain are tokenised fiat currencies, often referred to as stablecoins. Most people and companies earn their revenue and spend their money in local currency, he remarked.
Widespread Adoption Possibly Very Damaging
Referring to the argument that bitcoin is an inflation-resistant currency, Brody asserted that In fact, it is a highly deflationary currency model, given the limited supply. He further claims that Most economists agree that deflation is, in fact, extremely bad for economies. Inflation, particularly out of control hyper-inflation, has not been a real risk in mature economies for decades, concluding:
Widespread adoption of bitcoin could be very damaging to the global economy.
The EY executive feels far more positive about blockchain technology than cryptocurrency, stating that The potential positive impact of blockchain on the Indian economy is enormous. He elaborated:
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.
He also revealed that his firm has many clients doing business using blockchain, from crypto assets to supply chain operations, emphasizing that We expect to see big growth in the near future in tax, healthcare, government, financial management and cybersecurity.
On the adoption of blockchain technology, Brody told the news outlet that The association of blockchain with cryptocurrencies has probably had a negative effect.
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