India has emerged as a leader in digital infrastructure. the country has ranked number 1 in the highest number of digital transactions made in 2022. Can developing economies learn a lesson from India? Molly Gambhir tells you more.

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The value of Bitcoin surged above $1,000 on Monday as the digital unit continues a dizzying rise that made it the best-performing currency of 2016.

Its value has more than doubled in the last year and it was trading at around $1,024 in afternoon European trading on Monday, after breaking through the $1,000 mark on Sunday.

It is now within reach of its historic high of more than $1,200 reached in 2013.

Some analysts believe the rise in Bitcoin is due to some investors treating it as a safe-haven, like gold, at a time of global uncertainty.&nbsp;

Others believe buying is being driven by speculative demand, with investors anticipating future rises and creating an unsustainable bubble.

Bitcoin was launched in 2009 as a bit of encrypted software written by someone using the Japanese-sounding name Satoshi Nakamoto.

Earlier this year secretive Australian entrepreneur Craig Wright said that he was the creator, but some have raised doubts over his claim.

Supply of Bitcoin is limited and it trades in cyberspace. As well as being an investment for some, it is also used for illicit transactions beyond the reach of law enforcement for drugs or arms on the internet.

Its value has fluctuated wildly since its creation, with news of a major Bitcoin theft by hackers in August sending its price plummeting by more than 20 percent.&nbsp;

Unlike traditional currencies such as the dollar or the euro, which require the sponsorship of a central bank, Bitcoin is decentralised.

Encrypted digital coins are created by supercomputers and then traded online or exchanged for goods and services by a network of users.&nbsp;

(AFP)

Supply of Bitcoin is limited and it trades in cyberspace

The value of Bitcoin surged above $1,000 on Monday as the digital unit continues a dizzying rise that made it the best-performing currency of 2016. Its value has more than doubled in the last year and it was trading at around $1,024 in afternoon European trading on Monday, after breaking through the $1,000 mark on Sunday. It is now within reach of its historic high of more than $1,200 reached in 2013. Some analysts believe the rise in Bitcoin is due to some investors treating it as a safe-haven, like gold, at a time of global uncertainty. Others believe buying is being driven by speculative demand, with investors anticipating future rises and creating an unsustainable bubble. Bitcoin was launched in 2009 as a bit of encrypted software written by someone using the Japanese-sounding name Satoshi Nakamoto. Earlier this year secretive Australian entrepreneur Craig Wright said that he was the creator, but some have raised doubts over his claim. Supply of Bitcoin is limited and it trades in cyberspace. As well as being an investment for some, it is also used for illicit transactions beyond the reach of law enforcement for drugs or arms on the internet. Its value has fluctuated wildly since its creation, with news of a major Bitcoin theft by hackers in August sending its price plummeting by more than 20 percent. Unlike traditional currencies such as the dollar or the euro, which require the sponsorship of a central bank, Bitcoin is decentralised. Encrypted digital coins are created by supercomputers and then traded online or exchanged for goods and services by a network of users. (AFP)

Bitcoin becomes the best-performing currency of 2016

The per value transcations of debit and credit cards at points of sale (PoS) terminals has declined post-demonetisation, suggesting the country has a long way to move from cash-based economy to a complete digital one, says a report.

The debit and credit cards transactions at PoSes were worth Rs 352.4 billion in value terms in November and Rs 181.3 billion till December 13, compared to Rs 511.2 billion in October.

The average transaction at PoSes was Rs 1,714 for November and Rs 1,643 for December compared to Rs 2,229 in October, says an SBI Research report.

&quot;The per value transaction declined in post demonetisation, which may be due to less number of PoS machines in the country compared to the demand,&quot; says the report.

It said the country has 15.1 lakh PoS machines but may need an additional 20 lakh more if digitisation has to gain traction. The report says looking at the usage of debit cards only on PoSes, the numbers are still a long way to go.

As of October, per debit card transaction at PoS was Rs 1,500 only, and the number of times transacted was only 1.3. &quot;Thus on an annualized basis, debit card transaction is around Rs 24,000,&quot; it said.

It said the government should thus incentivise the usage of debit card (there are 74 crore debit cards in use) on PoS by giving tax concession like 80C.

The per transaction value of pre-paid instruments (PPIs) including m-wallet also declined post demonetisation.

&quot;This decline is possible due to the fact that still customers are not comfortable in using m-wallets either due to lack of security or trust or awareness,&quot; the report said.

The report, however, said the mobile banking transaction data indicates a huge success, with total volume through mobile banking increased by 9.7 per cent month-on-month to Rs 1245 billion in November 2016.

The per transaction value increased by a whopping Rs 17,207 in November from Rs 14,536 in October.

The report said the current size of digital banking including credit card and debit cards through PoS terminals, transaction through PPIs like m-Wallet, PPI cards and mobile banking is around Rs 1.7 trillion.

This size has to increase from the current level to atleast Rs 3.5 trillion which is a conservative estimate of the gap between the actual currency in circulation and required currency in circulation.

It said there is a need to ensure that per mobile banking transaction increases from the current level of Rs 14,500 to Rs 25,000 monthly.

And therefore to fully utilise the potential residing in the digital channel, banks also need to focus on PPIs, particularly on mobile wallets.

Mobile wallets transactions need to increase from current level of Rs 34 billion to around Rs 100 billion going forward.

&quot;This means that value per transaction is increasing significantly from current level of mere Rs 475 to around Rs 1000,&quot; the report concludes.&nbsp;

(PTI)

The slide in numbers suggests the enormity of the task at hand before the country is transformed into a cashless economy

The per value transcations of debit and credit cards at points of sale (PoS) terminals has declined post-demonetisation, suggesting the country has a long way to move from cash-based economy to a complete digital one, says a report. The debit and credit cards transactions at PoSes were worth Rs 352.4 billion in value terms in November and Rs 181.3 billion till December 13, compared to Rs 511.2 billion in October. The average transaction at PoSes was Rs 1,714 for November and Rs 1,643 for December compared to Rs 2,229 in October, says an SBI Research report. "The per value transaction declined in post demonetisation, which may be due to less number of PoS machines in the country compared to the demand," says the report. It said the country has 15.1 lakh PoS machines but may need an additional 20 lakh more if digitisation has to gain traction. The report says looking at the usage of debit cards only on PoSes, the numbers are still a long way to go. As of October, per debit card transaction at PoS was Rs 1,500 only, and the number of times transacted was only 1.3. "Thus on an annualized basis, debit card transaction is around Rs 24,000," it said. It said the government should thus incentivise the usage of debit card (there are 74 crore debit cards in use) on PoS by giving tax concession like 80C. The per transaction value of pre-paid instruments (PPIs) including m-wallet also declined post demonetisation. "This decline is possible due to the fact that still customers are not comfortable in using m-wallets either due to lack of security or trust or awareness," the report said. The report, however, said the mobile banking transaction data indicates a huge success, with total volume through mobile banking increased by 9.7 per cent month-on-month to Rs 1245 billion in November 2016. The per transaction value increased by a whopping Rs 17,207 in November from Rs 14,536 in October. The report said the current size of digital banking including credit card and debit cards through PoS terminals, transaction through PPIs like m-Wallet, PPI cards and mobile banking is around Rs 1.7 trillion. This size has to increase from the current level to atleast Rs 3.5 trillion which is a conservative estimate of the gap between the actual currency in circulation and required currency in circulation. It said there is a need to ensure that per mobile banking transaction increases from the current level of Rs 14,500 to Rs 25,000 monthly. And therefore to fully utilise the potential residing in the digital channel, banks also need to focus on PPIs, particularly on mobile wallets. Mobile wallets transactions need to increase from current level of Rs 34 billion to around Rs 100 billion going forward. "This means that value per transaction is increasing significantly from current level of mere Rs 475 to around Rs 1000," the report concludes. (PTI)

Demonetisation: Slump in use of cards despite cash scrap

India&#39;s finance minister Arun Jaitley on Thursday announced a raft of measures aimed at encouraging&nbsp;people to make digital transactions.

Latest figures show digital payments have seen a jump since the Indian government decided to ban the old notes on November 8.&nbsp;Digital transactions have jumped from 20 per cent to 40 per cent in the last 30 days.

Pushing for more digital payment, he also announced a 0.75 per cent discount while buying fuel by debit/credit cards or through digital wallets.&nbsp;

Buying general, life insurance policies from government-controlled insurers&#39; websites and premium to get 10% and 8% discount, Jaitley said.

He also announced a 5 per cent&nbsp;discount for railway facilities like catering, retiring rooms if one uses digital payment system.

Announcing 11 decisions to promote digital transactions, Jaitley said that monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from January 1.

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India&#39;s finance minister Arun Jaitley announces raft of measures to incentivise digital transaction (WION)
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Online booking of railway tickets will get Rs 10 lakh accident insurance. Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent.

Briefing the media corps at New Delhi on Thursday, Jaitley said two point of sale (PoS) machines would be installed at one lakh (100,000) villages across the country.

Earlier in the day, the government announced it would waive service tax for debit or credit card payments&nbsp;up to Rs 2,000.&nbsp;

&ldquo;Today its one month since PM announced demonetisation decision and in last 30 days we have seen major changes in economy,&rdquo; Jaitley said.

(WION with inputs from PTI)

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India's finance minister Arun Jaitley made a raft of announcements to encourage digital transactions

India's finance minister Arun Jaitley on Thursday announced a raft of measures aimed at encouraging people to make digital transactions. Latest figures show digital payments have seen a jump since the Indian government decided to ban the old notes on November 8. Digital transactions have jumped from 20 per cent to 40 per cent in the last 30 days. Pushing for more digital payment, he also announced a 0.75 per cent discount while buying fuel by debit/credit cards or through digital wallets. Buying general, life insurance policies from government-controlled insurers' websites and premium to get 10% and 8% discount, Jaitley said. He also announced a 5 per cent discount for railway facilities like catering, retiring rooms if one uses digital payment system. Announcing 11 decisions to promote digital transactions, Jaitley said that monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from January 1. India's finance minister Arun Jaitley announces raft of measures to incentivise digital transaction (WION) × Online booking of railway tickets will get Rs 10 lakh accident insurance. Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent. Briefing the media corps at New Delhi on Thursday, Jaitley said two point of sale (PoS) machines would be installed at one lakh (100,000) villages across the country. Earlier in the day, the government announced it would waive service tax for debit or credit card payments up to Rs 2,000. “Today its one month since PM announced demonetisation decision and in last 30 days we have seen major changes in economy,” Jaitley said. (WION with inputs from PTI)

Demonetisation: Fuel, train tickets to be cheaper on digital payment

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