The burning issue of black money generation and circulation needs to be handled with some sustainable, long-term reforms, instead of resorting to drastic, short-term interventions as they tend to backfire and fail to make any impact on such an economy, which remains largely un-documented and where the black money hoarders can easily convert their illegal funds into other assets. 

A long-term remedy, issuing the e-coin or digital currency can help such corruption-hit countries to control black money, eradicate corruption and to encourage the general public to disclose their hidden assets to the government. Using the digital currency is not a new method, as many developed countries have successfully addressed the concerns posed by conventional paper currency. Making regular transactions through a digital currency helps generate a log or a documented record and creates a huge amount of real-time data for the government to analyse and make better-informed policies accordingly. 

Consequently, it leads to more tax collection, offering no chance to hide transactions from tax authorities. Besides eliminating the use of black money/fake currency in the country, the move will also thwart funding of terrorist organisations that mostly rely on laundered or ill-gotten money. 

As a result of digital currency, an increase in the banking industry’s deposits and will enable banks and financial institutions to sanction more loans at a reasonably low interest rate, thus increasing investments manifolds and creating more jobs. 

Resorting to digital currency is a viable option if the government is truly committed to uprooting corruption. It looks difficult to implement it at the start, however, the idea of using digital money as a popular currency is all achievable and it only entails a one-time cost. 

SYED FARMAN GHANI,  

Canada, December 8.