IASbaba's Flagship Course: Integrated Learning Programme (ILP) - 2024 Read Details
TOPIC:General Studies 3:
- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment
Background: Compelling arguments have been made to justify the existence and use of bitcoin. The currency has caught on in a number of countries to the extent that there are indicative exchange rates for bitcoin in almost all currencies in the market. The concept of bitcoin has caught on in the world and there is evidence of its use in India, too. Also, the start of a new currency of a similar variety cannot be ruled out; hence, it is necessary to take a stance on the same.
What is cryptocurrency?
CC is a currency created from nowhere through intricate software which is foolproof. A certain sum is created independent of any central bank which is then allotted based on demand for a price which is fixed externally. A bitcoin trades at around Rs. 2.5 lakh and would be equal to around $3,800 or €3,200.
Advantage of CC:
The advantage is that it works on algorithms and is not connected to how central banks and countries function and the ownership is anonymous. The fact that it is accepted by sellers is critical here and hence can be used seamlessly independent of monetary policies being pursued. Defenders claim it is some kind of an alternative asset like land or stocks and is legitimate (can be taxed in some jurisdictions as capital gains).
In Indian context:
For India, that has launched an outright war against black money, which could also have meant compromising growth in the short run through demonetisation, allowing cryptocurrency (CC) would be a contradictory act.
Arguments against CC:
Conclusion:
On all counts, allowing CC cannot be justified. It should not be considered, and should also be made illegal. If one wants ease of electronic payments, this has been accomplished by the government/RBI. Allowing such a currency will generate black money. And most importantly, the central bank will lose its control over the medium of exchange in the country as well as monetary policy formulation.
Connecting the dots:
TOPIC: General Studies 2:
- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
- Issues relating to development and management of Social Sector/Services relating to Health
Background:
Today, 800,000 persons die by suicide globally and over 1,33,000 in India every year. Among 15-29 year olds, it’s the second leading cause of death. Reasons attributed range from family problems and ill health to mental illness, debt, unemployment, failure in exams and relationships.
Why the distress?
Multiplicity of material and existential problems results in turmoil, followed by confusion and apathy that invokes feelings of distance, unquietness and feeling trapped. Inability to grapple with the complexity of economic and social pressures of survival and conformity seem to result in a sense of hopelessness. The injustice of relative poverty or the anguish of perpetual and intergenerational distress resulting from intractable structural barriers pose a form of uncategorised violence that result in a lack of optimism and a chronic state of hopelessness.
How important are social policies?
Essentiality of social policies that support those in distress through periods of economic lows can be judged form following case study- High levels of social suffering prevailed through the Great Depression in the U.S., it was death by suicide that showed significant increase in incidence, in comparison to most other ill health conditions. States that maintained social equilibrium safeguarded essential interests of the disadvantaged through uninterrupted investments in health, education and social sectors. In this context, it may be important to note that 70% of persons who died by suicide in India lived on an annual income of Rs. 1 lakh.
As we better understand predictors of suicide, key harm reduction theories emerge.
The way forward:
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