Demonetization is Archaic. Governments collecting of TAX on rightfully hard earned Money of ordinary Citizen is Mediaeval. No one can stop advancement of Technology and the disruptive paths it create. However, there has to be a way to tackle it and half baked solutions like Demonetization are of no help. The way to go is to walk, and walk the full way with disruptive technology converting it an advantage.What hurts Economy most is not Black Money alone but also large portion Money being guzzled up and converted into its virtual form by fast mushrooming e-money businesses creating parallel economy of a black hole of Virtual Money draining Banks hurting liquidity and eventually disrupting Nation’s economy. Forewarned is forearmed.

1. UNIVERSALLY GOVERNMENTS
OPERATING MONEY AS COMMODITY
(#UGOMAC)
Author: Abraham Paul. P
Thiruvananthapuram, Dated 02 January 2017
Short link: http://wp.me/p1ZsI2-Yn
Introduction. Demonetization is Archaic. Governments collecting of
TAX on rightfully hard earned Money of ordinary Citizen is
Mediaeval.
No one can stop advancement of Technology and the disruptiveNo one can stop advancement of Technology and the disruptive
paths it create. However, there has to be a way to tackle it and half
baked solutions like Demonetization are of no help. The way to go is
to walk, and walk the full way with disruptive technology converting
it an advantage. Forewarned is forearmed.
What hurts Economy most is not Black Money alone but also large
portion Money being guzzled up and converted into its virtual form
by fast mushrooming e-money businesses creating parallel economy
of a black hole of Virtual Money draining Banks hurting liquidity
Everyone, right from
top, and strangely supposed to be renowned economists, andtop, and strangely supposed to be renowned economists, and
the Media 24/7 talk relentlessly mixing up disparate issues viz.,
#Demonetization, #BlackMoney and lately to forget Cash by moving
over to #CashlessSociety by everyone using Credit/Debit Cards, e-
wallets of Private e-Commerce companies, Mobile wallets etc.,
without fuss about money in their hands or in their bank accounts.

2. But then what they all seem to forget is that Debit cards, Mobile
wallets etc,. need be filled and refilled with Money into it in the first
place to get service, and from where people will get Money for that.
Simple, it can happen only if the income and earnings of
everyone also paid and received and spend as Money in Virtual form
(e-money) through their usual sources. The way to do it is by
in India) alsoin India) also
create all forms of money in virtual form; and certainly not by any
Private e-Commerce Companies.
End of the day it simply means that in addition to printing and
releasing currency notes, RBI shall also shall create Money in
Virtual form and also create discrete open valued e-Wallets, tamper
proof, fail proof, cannot be duplicated, hacked or disrupted in
anyway by any one; each of it with parameters that can be
programmed and altered individually and made available to every
one as its Users
any form of Money transactions happen ie. Banks, Institutions,any form of Money transactions happen ie. Banks, Institutions,
Organizations, Vendors and Merchants, Shops etc,.
These e-wallets each with discrete number and identification code
linked with Aadhar (Indian UUID) of every Citizen will become part
of a Real/Virtual bank account of their choice that can be
filled Virtual Money as Data from One paisa to any amount and
acquires one lump some value in the hands of the Creator, the
Banks and every POSs and in the hands of every user. The lump
some value of the e-wallets get altered as e-money received and
spent from it thus making the denominations of Money also
Virtual.Virtual.
Thus RBI will have an e-Wallet, its value in e-Money is the sum total
value of e-Money at any point of time is the value of entire e-
Wallets RBI has issued and in circulation. Thus the total sum of the
Virtual Money plus Real Money in the Country always remains
constant. It is thus RBI is to be made the sole Creator, Custodian,

3. Operator, Regulator and Controller of Virtual Money in any form in
the Country. The value of e-Money in the Users e-Wallets get
modified every time a request for transaction by any User through
their Bank or other Media.
1. Inclusive growth:
Please see a paper pubPlease see a paper pub
comprehensive and consolidated ideas and proposals to realize
Financial Inclusion and Microfinance support to people especially in
the lower social-economic strata in the link wp.me/p1ZsI2-4g
The above paper describes in detail how Money through Mobile
(mTm) envisage wide range of products and service to cater for all

4. sorts of payments in every Points of Sales & Services with money in
digital form for everything, anywhere and everywhere, exchange of
physical money to e-money and vice versa.
Further, Money through Mobile (mTm) can enable smooth
changeover to Cashless Society using UUID for all purposes and
to roll out various schemes such as DBT etc., with exclusive Virtual
Banks as Payment Gateways, Universal, simple and easy to use
applications, 24/7 service from anywhere any time, any amount and
Digital Connectivity in remote areas with GPS via Satellites.
2. Power and Perils of Money going Virtual.
and Perils of Money
-Ku in which I had explained
in detail the urgent need to bring in regulation to prevent fast
mushrooming Private e-money management companies guzzling
liquid Money draining banks and create parallel economy of
As e-money has to be in virtual form, the way out is for the Banking
Industry itself handle it so that liquidity is not lost. Please see in
how the Real and Virtual
Money Cycle looks like with RBI becoming the Creator, Custodian,
Operator and Controller of Money in its Real and Virtual forms.

5. As can be seen in my paper, to move over to Cashless society by
using Debit cards, Mobile wallets etc., as of now people
need Physical Money in hand or in Bank account in the first place to
charge and recharge Debit cards, Mobile wallets etc,.
A presentation on this is in the link: wp.me/p1ZsI2-M6
In order to make it fully Cashless Society and also to regulate and
harness huge amount of Virtual money involved, the way out is that
RBI shall be the sole Creator, Custodian, Regulator and Controller of
-Wallets and-Wallets and
make it available to all Citizens in India, like Aadhar.
Reserve bank of India shall generate Money in Virtual form instead
of printing Currency so that everyone get all sort ofincome and
earning in their e-Wallet in the form of Virtual Money through Banks
and thereby the liquidity is maintained. This will also enable RBI to

6. create even Billions worth of e-money in its e-Wallet and distribute
it to e-Wallets of Banks within few hours without the sort of fuss
seen now.
As RBI remain the custodian of e-money, every e-money transaction
in the e-wallets everywhere can happen only with authentication of
RBI like in the case of NEFT & RTGS. Hence, RBI will have full
statistics of the e-money movements in Virtual form anywhere and
everywhere.
3. UNIVERSALLY GOVERNMENTS OPERATING MONEY AS
COMMODITY (UGOMAC)
How to make Countries Tax free regimes.
With adoption of the above arrangement of Real and Virtual Money
cycle, Governments Universally across the World can use Money as
a commodity (an idea first of its kind ever) to generate much needed
enough income for its needs by levying a small percent,enough income for its needs by levying a small percent,
say hypothetically at 1% on every money transactions, both Virtual
and Real.
For example:- There are above Billion Mobile Phones in India. Say a
modest amount of Rs.15000 transacted by every phone on an
average per month makes it Rs.15 Trillion per month. Money is
dynamic and get re-transacted about 20 times a month making it to
Rs. 300 Trillion ie. Rs. 3600 Trillion annually. 1% of it is Rs. 36
Trillion which is about twice the total outlay of
Central budget.
This is just about with the income from Money through Mobile
alone, and it will be hundreds of Trillion with 1% levy on all other
forms of Money transactions, such as for Goods & Services, Real
Estates etc,. Basically there will be no other form of Taxes, people
have to pay, Direct, GST or else, thus making India a Tax free

7. regime. Concepts are important, nut and bolts can be added by
experts.
4. The efforts involved to move over to fully Cashless
Society?
Naturally a question arise how will Government make everyone use
ever payment in Cashless payment route. This can be realized byever payment in Cashless payment route. This can be realized by
Government make it a rule ring that in every place Money
transactions happen shall be treated as Point of Sales / Point of
Service and Money transacted in both Physical and Virtual form
shall be done only through that. Now if anyone transact Peer to Peer
or Peer to Business or B to B in Physical Money other than through
POS to avoid levy on its transaction, it has to ultimate reach a POS
for getting Goods and Service and will come under levy payment in
the hands of the receiver. This is ensured as the POS can be made
to accept Money only in Virtual form.
However there shall be facility to accept Money in physical form andHowever there shall be facility to accept Money in physical form and
exchange it to Virtual form and vice versa to complete the
transaction inviting levy twice. This will work as incentive to
stick to Cashless mode.
4.1. Money in Physical and Virtual form can co-exist for
some more time.
If someone want to use Physical Money at a POS, it has to be
exchanged into Virtual Money first. Facility shall be always available
to exchange Physical Money into Virtual Money and vice versa,
always inviting levy in each transaction; thus Virtual Moneyalways inviting levy in each transaction; thus Virtual Money
transactions become cheaper and this incentive help enhance
Cashless mode. Even the Black Money hoarded will have to go
through a POS some where some time paying levy and get into the
statistics of Government.
4.2. The base becomes broader like never before.

8. Thus as everyone everywhere pay the levy on money transactions
both in its Physical and Virtual form; the poor spend less and pay
less; the rich the other way around; the base is widened to entire
population and revenue generated will be too huge to take care the
needs of Central and State Governments together with no other
Taxes, Direct or else, GST etc,. As the levy rates are program
controlled it can be varied as decided by Government from time to
time according various parameters such as user based, location
based, status based, special needs based etc.
4.3. Less dependency on FDI.
Once Governments developing countries are able to generate enough
income to cater for all its needs, dependency on FDIs diminishes
considerably.
4.4. Easy and quick to apply changes in emergent
situations.
Another important aspect is that the income generated can be need
based and can be varied as needed from time to time in case of
national calamities, poor or failure of monsoon, famine, etc., and
revert back at will just with the press of a button.
5. Eradication of Corruption and Black Money and Control
on Terrorism activities.
As RBI being the creator and custodian of e-money entire statistics
will be available and can be monitored to prevent Corruption and
Black money. Same way flow of Money into wrong hands can be
prevented the one and the only sure way to restrict terrorist
activities in the Country.
6. Pre-requisites.

9. India should have its own INTERNET CLOUD and INTERNET
EXPLORER Servers.
6.1. India INTERNET CLOUD and indigenous Servers.
Last but not the least, in order to get all these done it is critical to
have an INDIA INTERNET CLOUD and own Explorer servers sitting
within the country are a must lest the entire economy can grind to
halt if solely depend on Explorers abroad happened to be hacked or
switched off due to any reason beyond our control.
6.2. Digital connectivity every where. Extending digital
connectivity needed for this every where laying Optical cables will
take time. The way to go is to implement these in places where
digital connectivity available and remote areas are connected to
Central Servers with GPS over Satellite links.
Hurrying to get these done without the perquisites such as above
and others will be like putting the Cart before the Horse.
Please see my blogs on Digital India: Views, opinions, and new
proposals on various Technology & Social and Community affairs.
http://wp.me/p1ZsI2-J5
____________________________________
Author: Abraham Paul P.
Free lance Telecom and IT Consultant, Ex Owner FCOMNET India & UAE / Vice
President Technical Sales, SPCNL SIEMENS ICN Germany / Director Trg. SC & TSPresident Technical Sales, SPCNL SIEMENS ICN Germany / Director Trg. SC & TS
SIEMENS ICN RHQ UAE / G. M & SMT TBG BPL Mobile India / Telecom Engineering
Service, (I) DOT India. Tweet @pa_paul
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