Crypto could become de-facto technology of the future: Giottus Cryptocurrency Exchange
Giottus Cryptocurrency Exchange makes it possible for anyone to become a cryptocurrency trading expert. It provides a reliable, trustworthy platform that is easy to use. All of this, while also adhering to the highest compliance and cyber-security standards to protect customers and their crypto-assets.
The Giottus Trade Engine has been engineered from scratch to deliver a powerful platform by keeping security, efficiency, speed, and scalability in mind. It is architectured with multi-level redundancies to automatically and seamlessly scale to handle increased payloads.
Arjun Vijay, Co-Founder and COO of Giottus Cryptocurrency Exchange, tells us more. Excerpts from an interview:
DQ: Why should cryptocurrency not be banned in India?
Arjun Vijay: The way we see it, there are only two paths cryptocurrencies are going to take. Either,
they turn out to be a short-lived fad or they can become the foundation for the next big thing like the Internet. India doesn’t have to take a hard decision if the crypto-ecosystem is not going to become a successfully large credible industry. In this case, the industry is going to fizzle out on its own.
But, if it becomes the most innovative technology of the future like the Internet, it would be similar to having killed companies like Infosys and TCS right at the beginning of the 1980s with restrictive tech laws. We will miss out on the next big wave of job creation and innovation.
Early backers of the Internet applications like Andreesen Horowitz are backing crypto projects. Recently, the IMF has also released a video explaining the benefits of cryptocurrencies.
But, if we still chose to ban cryptocurrencies, we have to understand that we cannot ban math!
It is next to impossible to monitor decentralized cryptography-based systems without recognizing and regulating the entities in the ecosystem. China has banned cryptocurrency multiple times in different ways.
Yet, the popularity of trading virtual currencies has flourished among its citizens, and they are still the leaders in the cryptocurrency mining space.
The recent development from China has been that the government has already begun testing out its central bank-backed cryptocurrency with the intention to replace Yuan and USD for international transactions.
If the developed countries like Japan, Australia, European and American nations are embracing crypto, it is highly probable that crypto could become the de-facto technology of the future. India cannot afford to miss out on such a huge opportunity by banning them.
DQ: What is the need for smart and sensible regulations in the cryptocurrency space?
Arjun Vijay: Creativity and innovation cannot thrive when there is a sword hanging above one’s head. Clear regulations give confidence to the researchers, developers, founders, and other stakeholders in the ecosystem to focus on developing solutions for the next generation. India with its large talented Software developer community could take the forefront of this revolution.
At the time of the RBI banking ban announcement in 2018, there were 30+ Indian Crypto exchanges in existence and many more in the planning/development stage. By the end of 2019 many shut shop, and this number was reduced to 10. This period has been seen by many cryptocurrency evangelists as one of the lowest points of Indian cryptocurrency history thus, far. Regulations bring in clarity that will help start-ups in this space to innovate and compete with the world, and not just focus on surviving.
Investor protection is one other major reason for the need for regulations. Regulations will also create a safe environment for legitimate businesses to operate in the space and weed out entities using Cryptocurrency as a tool to cheat naive investors.
Any financial product with no investor protection is just going to encourage scammers to use it as a medium to swindle money from the ill-informed investors.
Regulations will also pave the way for institutions to begin investing in this space. If the largest institutions in the international arena like Rothschild, Blackrock, and Vangaurd can choose to diversify their investment in the cryptocurrency space why should the Indian Institutions be barred from doing so?
DQ: What are the prospects of cryptocurrency from an Indian context?
Arjun Vijay: Cryptocurrencies offer people a myriad of Financial solutions like Savings account options, Lending options, Payment options, investment & trading options, earning options to name a few. Many projects are currently being built on the decentralized ecosystem that challenges the existing Institutions that have lasted for more than a century.
Cryptocurrencies will help achieve financial inclusion of the downtrodden by not having regressive requirements like the “Minimum Account Balance” and charging high fees for transacting.
Further, decentralized technologies like Bitcoin, Ethereum can help remove the large middlemen like Facebook, google that control the flow of user data and return value to the customer. We can have versions of Uber, Zomato, Swiggy that don’t have a centralized third party taking 20-30% cuts. These apps could work like how Wikipedia or Firefox works. Free and open source.
DQ: What are the current trends and future of cryptocurrency in India?
Arjun Vijay:Many projects are currently being built in India on the decentralized ecosystem, like Matic, MaharajaDAO, Springworks, etc., Currently, we see a large number of youngsters signing up in our platform to purchase the millennial gold. From hedge funds to pension funds and institutions like Microstrategy, Bitcoin has been internationally gaining acceptance as an alternative asset that is non-correlated with equities.
Further, Bitcoin has always been called a crisis asset and in the current pandemic situation, it has lived up to its reputation by giving 60% returns YTD. These events have had a positive effect amidst the Indian investors and we are seeing exponential growth in user registrations since the beginning of this year.
The Indian government is yet to take a strong stance on the crypto regulations. As time goes by, the case of regulations becomes stronger and stronger. Cryptocurrencies are anti-fragile. They are getting more users, more applications every passing day and we hope all these make a compelling case for the Indian government to bring in positive regulations to this space.