Contd. from Page 4
Networks dominate today more
than nations. The millennials and GenZ that have grown with the internet and
smartphones are more acclimatized to networks than a territorial obedient
behaviour. Today, a country can be paralyzed without even firing a bullet with
cyber weapons, a pandemic or an ecological catastrophe. That is where India
needs to stop thinking like a territorial state. The new paradigm is that of a
network state. It is a state where every citizen is deeply connected with every
other citizen in a virtual manner in all those matters that were once exclusive
preserve of the governments. Whether it is communications, education, global
business or payments, people are hardly noticing any government presence in
their day-to-day lives. This retreat of the government is quite visible over a
generation. It does not mean that
governments are not needed. .....................................................................................................................................................................Chinese model is not aligned with the federal
structure of Indian constitution as well as it is not suitable for the plural
structure of Indian society. Still, if India must reincarnate as a network
state, what important anchor it must choose to redefine itself?
3.1 A new anchor for future of
money
.............................................................................................................................................................................This paper basically proposes two following design
changes in money: -
1. India
needs to shift monetary definition from LOLR consensus to a public utility-based
token floating on blockchain. This means exercising the right of a sovereign
network state to choose a new monetary anchor called Indian Data Dollar (IDD)
that would be backed by one GB of data. It would shift the logic of money from the
political power of a nation to data consumption behaviour of 1 billion
citizens.
2. From a
constitutional point of view, it means that Indian parliament should legislate a
move from single legal tender to a dual legal tender system where IDD would be
pegged at INR10:IDD01 for next 10 years. This bridge between INR and IDD shall
be safeguarded by RBI but the two worlds should be separate in terms of
identification. The INR world should remain as it is while the IDD world should
signify a parallel network state where Indians can interact with the rest of
world with full capital account convertibility. It is a world that does not
require tax collection machinery rather a uniform transaction tax @2% via
blockchain protocol can collect a huge amount of revenue for sharing 65:35
among the states and the centre.
4.0 Mechanism
design behind Indian Data Dollar
........................................................................................It is also one of the cheapest data countries with a predominantly young
population where the expected user base would be at least 1 billion in the next
3-4 years. The data consumption is a mandatory need for every individual who is
15+ and it is only going to increase year after year. If data is the new oil, let us dollarize the data and
call the new anchor of money as Indian Data Dollar (IDD). How to do it?
4.1 Tokenize the telecom sector totally
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