Upi over IOT
A cybersecurity risk
It is all very nice to sell convenience as a feature. But when convenience makes you give up control, it becomes a double edged sword.
At the heart of the debate is the role of the “soon getting extinct” banks in the context of the obsolescence prone NPCI.
Trust is now about security. Your honesty is of no use if some thief can raid your vault. Of course, the best way is to eliminate the human element as well as the theft possibility. And that is exactly what Bitcoin does.
Unlike gold which can be mined and new deposits will keep getting found – bitcoin is limited to approx 25 million coins and no more. If bitcoin were to be a stock, it would be amongst the worlds largest and best return generating stocks. It has a market cap in excess of usd 2 trillion. It is a matter of time before central govts or corporate treasuries maintain their reserves or part of their reserves in bitcoins. And this could happen very soon. Maybe in 2026.
So NPCi is on a faulty foundation primarily because of three reasons. First it is a centralised trust based server. Secondly it works through banks (and who knows when the bank will fail. It is not IF but WHEN). Thirdly it is a dominant monopoly.