Cryptocurrency (Representative image: Reuters)
For Surojit Chatterjee, the Chief Product Officer at one of the US’ largest cryptocurrency exchanges Coinbase, demonetization is what led him to wonder whether cryptocurrencies will be the future of financial transactions.
Chatterjee was working with Flipkart in India in 2016 as Senior Vice President and Head of Product when the government announced Rs 500 and 1,000 denomination notes to be invalid. He saw the challenge for Flipkart’s business back then as it was largely dependent on the cash-on-delivery mode of payment.
“People like my father who had never used credit or debit cards had to now stand in long queues outside banks to get cash. That is when I started to read up more on cryptocurrencies and bought my first Bitcoin next year,” Chatterjee said speaking at TiE’s India Internet Day 2021.
He said that he hoped the Indian Government will look at cryptocurrencies holistically and assess all its merits while formulating regulations. Currently, India is awaiting the Cabinet to clear the Bill on cryptocurrencies and speculation is rife on how the bill treats various crypto assets and income from them. Experts largely expect it to be defined as an asset class and to be taxed as such.
“Cryptocurrencies can enable small businesses in India to access a global pool of capital. Also, there is an active community of developers in India now who are creating a lot of value and wealth. If India puts the right regulation and encourages innovation and entrepreneurship in digital finance, India could be the next global financial hub,” Chatterjee said.
As cryptocurrencies continue to see a mix of acceptance and rejection globally, many have questioned whether this frenzy is a bubble waiting to burst. But Chatterjee feels that the world has not yet scratched the surface on what cryptocurrencies and blockchain technology have to offer.
“It is still very early days for crypto. I believe we have built less than one percent in terms of cryptocurrency as a platform. Just look at how the internet shaped up in the early 1990s. People wondered then if it’s already too late to invest in internet companies back then and companies like Facebook, Instagram, Uber etc. were yet to come,” he said while cautioning that people must use their judgment before investing in any asset.
Chatterjee added, “Technology is a paradigm shift. It is going to take a long time to shift this paradigm and it’s probably too early to say anything in terms of the illusion of this technology.”
After Flipkart, Chatterjee moved back to the US to join Google as the Vice President of Product Management for Google Shopping, before joining Coinbase in February 2020.
Meanwhile, Coinbase recently faced the heat from US securities and capital markets regulator, the Securities and Exchange Commission (SEC). Coinbase was forced to suspend the launch of its product Coinbase Lend after the SEC threatened to sue the Nasdaq-listed crypto exchange if the program was launched.
Coinbase Lend allowed customers to lend their US Dollar Coin (USDC), in return for a 4 percent annual interest, which is eight times the national average for savings accounts in the US. USDC is identified as stablecoin, meaning it is linked to an existing asset, in this case the US Dollar. Stablecoins stay at a fixed value and in line with the asset they are linked to, which lends them stability.
