China’s political and economic system is at its worst possible time because of coronavirus. Several Chinese businesses and factories are now struggling to reopen business activities. The majority of businesses’ are operating below their capacity due to the Coronavirus plague. Chinese Government is using every tactic to tackle this virus and to minimize its effect on the populous. Nodoubt, china is the world’s second largest economy and you can see their growth over time.
Breakdown of China’s Economy because of Coronavirus
In today’s date, China is now the 2nd-largest economy in the world, estimating for 16% of global GDP. Whereas in comparison, in the same time period, the U.S GDP never topped 3%. Anyhow, china’s overall GDP is almost 9 times larger than it was during the SARS outbreak in 2002-2003. But due to this deadly plague, it had impacted China’s Economy, along with Japan and Vietnam. As they import material and parts from china. I won’t be wrong if we say they relay on the Chinese supply chain.
But now china grapples due to coronavirus, the economic damage is mounting around the world. Businesses are dealing with great loss in revenues and disrupted supply chains due to china’s factory shutdown. 10 million people remain lockdown in dozens of cities because of the corona.
The pandemic plague has hit a lot of economic activities and transactions in the world. Sadly, several crypto conferences and events have bee postponed or closed because of this outbreak. A devastated economy of China, bring a devastating effect on the world market too. The blockchain technology is easily available to China 2019s beckon to weather the storm.
As the United state-backed away, china had an opportunity to move into high-potential technology by investing in blockchain. China’s most important goal in developing blockchain would be to help create a digital currency. Not any new cryptocurrency like Bitcoin, simply making already – the existing monetary base digital. Blockchain can be fundamental for tracking & recording transactions & creating a new unit controlled and distributed by the regime. It can further enable china’s digital economy where half of all digital transactions Totaling over 9 trillion last year.
The Rise of Emerging Tech in China
China is indeed aiming for technology supremacy, pumping billions into emerging industries from biotech to artificial intelligence. But digital currency would enable China to not only harvest the benefits of digital transactions, but also possibly gain a look at where the money is being used, and by whom, restricting money laundering and following a growing environment of surveillance.
Along with that, blockchain serves as a barrier against international cryptocurrencies. And also helps the government to retain control of the money supply.
Moreover, this would help easily China’s increasingly cashless society.
IN this deadly storm, blockchain might be the closet port to help them to get out of it. Let’s hope they opt for it, because of china’s economy whole world economy is at stake. China is organizing to dispersed technology, requiring that all “nodes” using the blockchain register with the government and provide information on their users. It doesn’t help to achieve blockchain’s goals of privacy and transparency. But In contrast, it has implications for human rights as China traces loyalty through financial transactions. As data is astonishingly complicated to be edited once added to the blockchain, it makes participating in party loyalty apps and purchasing censorship-free materials, becoming more difficult to avoid as China moves towards a more cashless society.
Cryptocurrency‘s fever is spreading like wildfire. Out of the total wealth out there (approximately $84 trillion). Bitcoins account for a whopping $41 million. Combined with other altcoins, crypto’s total worth equals $100 million. That shows impressive penetration for a digital asset that’s relatively new. In the Indian subcontinent, crypto is still in an infantile stage. Though only 0.5% of Indians know about Bitcoins, surprising Indians accounted for nearly 10% of all global crypto transactions done till May 2017, as per a survey by Quartz. Clearly, Indians are taking to crypto like fish to water! Cryptocurrency or PayTM wallet? Let’s have a
It’s a well-accepted fact that a majority of Indian population is averse to traditional financing and banking practices. The masses still prefer informal monetary transactions, relying on good faith and goodwill. While PayTM and other digital wallets offer convenient and quick money transfer competencies, they do require validation and tie-up with banks and financial institutions. On the other hand, crypto wallets offer anonymity and transparency to all parties involved. Bitcoin network is a global spreadsheet whose peer-to-peer mechanism is not regulated by any government or individual. It relies on pure mathematical logic and protocols to verify transactions. Bitcoin’s ease of transfer, anonymity, reduced risks and lower transactional fee requirements have given new hopes to the 69% Indians living in the hinterlands who lack access to traditional banks.
But can a cryptocurrency wallet gain widespread acceptance and awareness among the technologically-challenged masses? Can electronic cash pave the way to a cashless economy as envisaged by the current Indian government? Let’s get a well-rounded insight into the matter…
Cryptowallet or PayTM?
Cryptocurrency or PayTM and Tez are digital wallets that are fundamentally different in their mechanism and technology.
BitIndia is India’s first cryptocurrency wallet. The open-source wallet can hold private keys of all your cryptocurrency and can be used for buying, selling, storing, and transacting digital money securely. Founded by John McAfee (of McAfee anti-virus fame) and his team, BitIndia aims to enroll 20% of the Indian population in the next three years onto its platform.
PayTM is India’s largest m-commerce platform. Launched in 2010 by One97 Communications, today PayTM has over 280 million registered users. From a bill payment and money transfer channel, PayTM has become a popular virtual marketplace with many reputed brands as partners. The government’s demonetization drive has made PayTM a household name. The same has led to a surge of interest in other cashless payment modes. And this is what can drive crypto’s growth in India.
Challenging PayTM’s popularity will be an uphill task for BitIndia and other cryptowallets. Nonetheless, the duel will be interesting to witness.
They are used to buy, sell, store, or transfer cryptocurrency.
It is basically a payment gateway and a digital wallet that can hold your currency (INR).
A cryptowallet though owned by individuals or firms, deal with cryptocurrencies that are decentralized.
This is a centralized exchange for money. It is owned by a single company.
Conflicts and discrepancies in transactions are sorted through peer-to-peer consensus mechanism.
Transactional conflicts are subject to PayTM’s internal payment processing protocol and procedures.
The technology underlying cryptocurrency is blockchain-based.
PayTM relies on various primitive tech stacks for its functioning.
Cryptowallets are pseudonymous. They don’t require users to reveal their real identities, though regulation is fast catching up on this feature.
PayTM users are required to register and all their transactions are well-documented and verified by partner banks.
The complete ledger of all transactions is entirely public.
PayTM maintains a ledger of transactions within the PayTM ecosystem.
Users are required to pay a nominal percentage of the transaction amount as a transaction fee to the host cryptowallet.
Users are not required to pay anything to PayTM for carrying out their transactions.
The Way Forward for Cryptowallets
Efforts by the government and private firms to mainstream Bitcoins are on. Healthcare and finance sectors have a lot to gain from the robust architecture and mechanism of blockchain technology that powers Bitcoins. The more acceptance Bitcoins gain, the more popular cryptowallets will become.
A clear advantage that crypto has over PayTM is the backdrop behind its origin. While Indians were forced to resort to PayTM and cashless means due to demonetization, crypto comes at a time when Indians already have a welcoming mindset towards virtual cash. BitIndia can leverage this advantage to race ahead of PayTM.
Read a review of the best Bitcoin wallets in the market today.
Incorporating cryptocurrency into the fabric of the Indian economy will be a challenge. Bitcoin, Litecoin, and Ethereum are still considered a vague concept best left to techno-savvy geeks. Little is known about how easy it is to set up a cryptowallet and how efficient and affordable such transactions are. The good news is that the capable team behind BitIndia, spearheaded by John McAfee, has a stronghold over blockchain technology and its applications. They have garnered support from Indian and international governments as well as institutional giants. In 2016, ICICI Bank conducted a complete cross-border transaction using blockchain technology. Even the nation’s premier bank, RBI, has plans to launch a new blockchain platform for its users. The path seems to be well-etched out for cryptowallets!
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