All things Money Thread

Big Daddy

Super User
Bitcoin and digital currencies tanked. However, they have produced a framework called blockchain that has the potential to make India corruption free. The way this technology works is that every transaction generates multiple copies (read only) that are stored in multiple places under independent authorities. Any changes need to be agreed up by all independent authorities.

Imagine you property ownership records (in addition to personal copy) stored in multiple places like banks that give you a loan, and at central and state government level. If someone loses their copy and needs to prove ownership then they have options to go to any of these three places (or more if more than 3 copies are stored). Any guy trying to commit fraud cannot change all these copies. Even one copy is changed, the change is not legit because it was not agreed by all other independent parties. A corrupt guy working for the government, who holds power to release a copy of your records, cannot demand money because you have alternative places to go to get a copy of your records.

So, what is the problem? It is the control freak government that likes to centralize power. They would lose power over its citizens. However, any government that is serious about removing corruption and increasing transparency should adopt this technology. The technology will increase trust and foster economic growth.
 
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adsatinder

explorer
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citymonk

Super User
One of the main reason for Amazon India Share loosing value could be this news.
I am not able to understand this Policy and it has been already implemented.

Brick and Mortar strores were facing shifting of major chunk of retail business to Online sales.

What does this means. What has been banned and who would benefit or lose with this new policy.

 

Big Daddy

Super User
Basically, it means that eCommerce companies cannot cut exclusive deals with sellers. Exclusive deals mean that some products (e.g., phones) will only sell on Amazon and not on Flipkart and vice versa. I think sellers got some incentives to cut exclusive deals for preferential treatment of their products on websites (advertisements on pages etc. or even target advertisements where big spenders were only shown phones from certain companies). Some of the incentives were passed on to customers in the form of discounts and cash back.

Brick and mortar companies could not offer such discounts so their sales probably lagged.

This government policy is a bad policy for Indian consumers as they will have to pay higher prices. Another joomla by the government to help traditional merchants survive at the expense of restricting competition and innovation. This is socialism at its best.
 

oliveroliver

New Member
Personally, I'm very interested in crypto money. I have one Bitcoin which I gonna hold. Too many times people freak out and sell the crashes correct and they miss out on recouping that money. I read cryptocurrency news to keep myself informed and can notice a massive addoption that I consider a great news.
 
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Big Daddy

Super User
As a diversification, digital currencies are fine but I doubt there will be massive adoption. Governments want to collect taxes and regulate money supply so they will not allow the adoption of these currencies. These currencies are used to evade taxes and do underworld things where tracking money transfers become difficult. There will always be a market for digital currencies like every other currency and gold.
 

adsatinder

explorer
Vodafone pulling out will send out poor signal on India’s investor-friendliness

Sunil Jain
Financial Express13 November 2019
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If there was a doubt in anyone's mind as to how long India's second-largest telco Vodafone Idea would stay afloat, Vodafone Plc chief Nick Reed has made it clear the end is pretty much nigh if, as the UK's Sunday Telegraph quoted him as saying, the government doesn't get it "boots off the industry's neck" and allow it to compete. After talking of "unsupported regulation, excessive taxes and ... the negative Supreme Court decision", Read said that if the government didn't fix things, "Vodafone Idea is destined for a potentially chaotic final act with potential repercussions for India's international standing". Prime minister Modi who didn't do anything to help the industry in his first term though it was obvious rapacious government levies were throttling the sector-even before RJio came in-would do well to pay attention to what Read has said for a variety of reasons.
Vodafone is India's largest foreign investor; it spent over $17 bn to buy out Hutch and Essar between 2007 and 2012, apart from what it brought in for expanding its network and buying spectrum. If such a big investor is close to shutting shop, as Read points out, it sends a terrible signal on how investor-friendly India is. While Vodafone was already hit by the UPA's retrospective tax amendment after it won its case in the Supreme Court, the current government didn't repeal the law even though Modi had campaigned against the UPA's tax terror in the run-up to the 2014 elections. And while Modi's government promised that it would accept court verdicts on the retrospective tax, including those by global arbitration panels, it tried its level best to stop Vodafone from approaching global arbitration tribunals.
Nor is Vodafone the only big investor to be hit by the retrospective tax, and the NDA's non-action on it. Within less than a decade of being in the country, Cairn Energy of the UK was producing a fourth of India's oil output. Not only was it was slapped with a retrospective tax, its shares worth $1bn were confiscated and dividends worth $300-400mn were appropriated; indeed, when Cairn (by then, the Indian operations had been sold to Vedanta) wanted an extension of its lease-so that it could add to India's oil production-the government agreed only if Cairn India raised the revenue it would share by a whopping 10 percentage points. A ruling on its arbitration case-in this case, too, the government tried to prevent the arbitration-is expected next summer.
And in the case of Walmart's $16bn purchase of Flipkart, the problem is that, after turning a blind eye to how the ban on FDI in retail was being circumvented by ecommerce players like Flipkart and Amazon-there were many others-while billions of dollars were coming in, the government suddenly decided it wanted to implement the law. Ironically, while the government is railing against the 'deep discounting' allegedly being done by players like Walmart and Amazon, it did nothing when similar allegations were being made by telcos like Airtel, Vodafone and Idea against RJio.
Given how investor-unfriendly government policies have been-the targeting of US seedtech firm Monsanto has been extensively covered in this newspaper-it is hardly surprising that FDI into the country has collapsed. Though the nominal numbers have risen from $31.4 bn in FY09 to $44.4 bn in FY19-it rose from $41.9 bn to $62 bn if the amount re-invested by these firms from their India operations are included-the real way to look at this investment is as a share of GDP; after all, overall investment levels are also judged as a share of GDP. Taken this way, FDI fell a third, from 2.54% of GDP in FY09 to 1.63% in FY19; when you look at the broader definition of FDI, the fall is from 3.4% of GDP to 2.3%.
It is, of course, true that the overall investment climate worsening in the country would also have played a role in FDI levels falling, but one way to isolate the kind of problem Read is referring to is to see how many repeat foreign investments India is getting in certain sectors. Certainly, in telecom, there have been few foreign investors for several years; and, in the case of oil, as the list of participants in the recent energy meet at Houston during the Howdy Modi event make clear, investor interests is waning. That is also obvious from the number of foreign oil majors who are bidding for the oil/gas fields the government has been auctioning over the past few years.




Vodafone pulling out will send out poor signal on India’s investor-friendliness
 
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