1) Dear Nileshbhai,

While the idea is good, the biggest hurdle is the centralization of physical gold thereby losing individual sovereignty and ability to resist government control.

@NileshShah68 https://twitter.com/nileshshah68/status/1264907053342109703">https://twitter.com/nileshsha...

2) Contrary to general consensus, blockchains are slow and inefficient. Permissioned/centralized ‘blockchains’ don’t actually require blockchains. A spreadsheet/database would do. https://twitter.com/nbalajiv/status/1046027342873690112">https://twitter.com/nbalajiv/...

3) Besides, centralized blockchain under government custody means politicians can ‘mine’ their own ‘GoldCoin’. Because.. sure why not. Lol. https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Face with tears of joy" aria-label="Emoji: Face with tears of joy">

4) Just like Emperors and Kings, governments cannot resist the temptation to devaluation/debasement.

- Roman Emperor Nero reduced gold in Aureus coin from 8 to 7.2 grams
- King Henry VIII reduced silver component in coins from 92% to 25%
- Nixon abolished the gold standard

5) Digital debasement by rulers is what will happen in this scenario.

Year 0:
1 ‘GoldCoin crypto’ = 1 gram of gold

Year 10:
10 ‘GoldCoin crypto’ = 1 gram of gold

6) Better option would be for Indian citizens to embrace a decentralized option like #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> to act as a possible hedge against misadventures of Central Banks around the world. Kotak could start providing the banking infra like JP Morgan in US.

https://www.bloomberg.com/amp/news/articles/2020-05-12/jpmorgan-is-now-banking-for-bitcoin-exchanges-coinbase-gemini">https://www.bloomberg.com/amp/news/...

7) Supreme Court quashed banking ban

https://m.economictimes.com/markets/stocks/news/sc-allows-trade-in-cryptocurrency-quashes-rbi-curb-on-use/amp_articleshow/74470078.cms">https://m.economictimes.com/markets/s...

8) #Btc https://abs.twimg.com/hashflags... draggable="false" alt=""> is associated with terms like ‘scam’, ‘fraud’, ‘bubble’ etc. Most laughable being ‘fake volumes’, ‘wash trading’ etc. Like as if most Indian stocks are free of manipulation. https://abs.twimg.com/emoji/v2/... draggable="false" alt="😬" title="Grimacing face" aria-label="Emoji: Grimacing face"> Every asset class has its set of bad actors. That doesn’t mean one ignores it completely https://twitter.com/nbalajiv/status/1259837428916862976">https://twitter.com/nbalajiv/...

9) A dated thread on this subject cc: @chokhani_manish https://twitter.com/nbalajiv/status/963757267035209728">https://twitter.com/nbalajiv/...