Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

India Is Likely to Become the First Digital, Cashless Society

Currencies / War on Cash Jun 29, 2017 - 05:19 PM GMT

By: John_Mauldin

Currencies

BY STEPHEN MCBRIDE : The top news out of India over the past 12 months has been President Modi’s move to ban 85% of the currency in circulation. However, something much more far-reaching has happened.

It’s called India Stack.


The Foundations of a New Financial System

Before 2009, half of all Indians didn’t have any form of identification, not even a birth certificate.

Without a form of identification, citizens couldn’t access services like banking, insurance, or even get a driver’s license. As such, many opportunities like starting a business were not available to them.

Then In 2009, India launched Aadhaar.

Aadhaar is a biometric database based on a 12-digit digital identity, authenticated by finger prints and retina scans.

It became the largest and most successful IT project ever. As of 2016, 1.1 billion people  (95% of the population) had a digital proof of identity.

But Aadhaar was just the beginning.

Taking Aadhaar to a Whole New Level

In 2016, India added another component to its digitized system called India Stack.

India Stack is a series of secured and connected systems that allow people to store and share personal data such as addresses, bank statements, employment records, and tax filings.

This is all accessed, and can be shared, via Aadhaar.

India Stack allows citizens to open a bank account or brokerage account, buy a mutual fund, or share medical records anywhere in India with just a fingerprint or retinal scan from Aadhaar.

Put simply, India Stack could be the framework for a new digital society.

A Cashless World Made Possible

Now, back to the biggest Indian news story of the past year, President Modi’s cash ban.

Modi’s move to demonetize the country was viewed as an isolated event. However, it was the action that forced everyone into the new digital system.

Since Aadhaar was launched, 270 million bank accounts have been opened in India.

A 2015 report from MasterCard found that India was one of the countries least ready to transition to a digital payment system.

Yet, 12 months later such a system was rolled out.

If the transition to a digital society can happen in India, where just 2% of transactions were non-cash a few years ago, it can happen anywhere.

India Stack could fast-track the move to digital payment systems across the developed world and mark the end of cash.

For astute investors, there are also huge investment opportunities in this revolution.

Investment Opportunities

A massive barrier to growth in India has been the number of non-performing loans in its banking system, which have risen fourfold since 2009.

It this sense, President Modi’s cash ban achieved something very important—it recapitalized India’s banks.

Since demonetization, over $80 billion has flowed into the banking system, and markets liked what they saw.

Since the beginning of 2017, the Nifty Bank Index, which represents the 12 biggest banks in India, is up over 30%. Telecommunications and technology sectors in India are also likely to see rapid growth in the midst of this transformation.

Download a Bundle of Exclusive Content from the Sold-Out 2017 Strategic Investment Conference

Get access to exclusive interviews with John Mauldin, Neil Howe and Pippa Malmgren from SIC, an ebook from renowned geopolitical expert George Friedman and bonus SIC 2017 content…

Claim your SIC 2017 bundle now!

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in