Page 26 - Cyber Warnings

Bitcoin Meeting Economic and Security Needs in India

With over one fifth of the world’s unbanked population and a lack of seamless payment
architecture, India presents a excellent development opportunity for bitcoin and vice-versa

By Elizabeth T. McCauley, Global Business Development Head, Coinsecure

Let us begin with the basics - what is bitcoin? Bitcoin is a digital, decentralized peer to peer
currency that has changed the way we view money. For years, monetary value was tied to gold
and currency was something we could touch or feel, in essence something concrete.

The dawn of and recent success of bitcoin has altered how we conceptualize money. Bitcoin is
based on the trustless trust. What that means is bitcoin is a transformative addition to creating
enduring trust based networks using web-based protocols that will devise a newer, more
effective and more transparent economic system.

Bitcoin serves an even greater purpose beyond a currency as a platform for further
decentralized development and rails for international fund transfers.

For example, in an economy like India, Bitcoin is not just an alternate currency but a platform for
further development of quicker and cost effective international payment systems.

Unlike traditional payment methods, there are few if any barriers to entry into the Bitcoin
ecosystem. In countries with larger underbanked populations, barriers include minimum capital
needed to open up a bank account, fewer banks in remote areas, higher levels of poverty
causing one to live paycheck to paycheck.

With Bitcoin, one only needs internet connection to sign up for a Bitcoin wallet and utilize bitcoin
exchange services. Bitcoin provides elements of convenience and security that far surpasses
what traditional financial institutions could provide.

As Bitcoin is a push payment system, the recipient and sender of funds are secure in the sense
that one will be guaranteed payment on the spot and the sender will not have to worry about the
recipient collecting confidential financial information.

As an outbound payment system, Bitcoin alleviates pain points of a more traditional online
payment method or credit cards and debit cards which frequently face issues with identity theft
and chargebacks.

What type of impact can Bitcoin and blockchain technology have on a country and economy like
India? India comprises approximately one-fifth of the total global unbanked population.

26 Cyber Warnings E-Magazine – April 2016 Edition
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