Daily Times

Sir: This is with reference to the ongoing demonetisation drive launched by the Indian government to control the flow of black money in the country. Quite a bold step taken, however, the burning issue of black money generation and circulation needs to be handled with some sustainable, long-term reforms, instead of resorting to drastic, short-term interventions or using such politically-influenced one-time measures as demonetisation. These kinds of initiatives tend to backfire and fail to make any impact on such an economy, which remains largely un-documented and where the black money hoarders can easily convert their illegal funds into other assets, or are able to exchange it as soon as the ban is lifted.

A long-term remedy, issuing the e-coin or digital currency can help such corruption-hit countries as India and Pakistan to control black money, eradicate corruption and to encourage the general public to disclose their hidden assets to the government.

Using the digital currency is not a new method, as many developed countries have successfully addressed the concerns posed by conventional paper currency. Making regular transactions through a digital currency helps generate a log or a documented record and creates a huge amount of real-time data for the government to analyse and make better-informed policies accordingly. Consequently, it leads to more tax collection, offering no chance to hide transactions from tax authorities. Besides eliminating the use of black money/fake currency in the country, the move, if implemented in Pakistan, will also thwart funding of terrorist organisations that mostly rely on laundered or ill-gotten money.

SYED FARMAN GHANI

Ontario, Canada