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  • Legalizing Bitcoin in El Salvador and takeaways for India

    El Salvador, a small coastal country in Central America, on became the first in the world to make Bitcoin, a digital currency, legal.

    Lessons for India

    While there are many precedents El Salvador sets for a global debate on cryptocurrency, we explore what this means in the Indian context.

    (1) Not a precedent for monetary policy

    • The development in El Salvador changes little in terms of Indian monetary calculations around cryptocurrencies.
    • The dynamic underpinning the whole move is that El Salvador has no monetary policy of its own and hence, no local currency to protect.
    • The country was officially ‘dollarized’ in 2001 and runs on the monetary policy of the US Federal Reserve.
    • The move is in part motivated by loose and expansionary Federal Reserve policy.

    (2) Coexistence with USD

    • The dollar will continue to remain the dominant currency in the country and Bitcoin would exist side by side.
    • Indeed, some analysts have pointed out how bitcoinization might change nothing on the ground if “legal tender” is to be considered by its strict legal definition.
    • However, as a result of this development, El Salvador becomes a most interesting case study of how the dollar and bitcoin would coexist side by side, and how that would play out for Bitcoin adoption.

    (3) Not merely currency but technology

    • The overall use of Bitcoin appears less motivated by its use as a currency and much more by the image and investment boost this could give the country towards innovation.
    • El Salvador believes that this move will be good for luring “technology, talent, and new ideas” into the country.
    • The move into Bitcoin ties in with larger efforts to revive a stalling economy and bring back growth into the country post-Covid.

    (4) Potential shift in remittances

    • The impact Bitcoin has on these remittance inflows would be worth monitoring for India, which is home to the largest remittance market in the world.
    • Remittances make up close to 20% of El Salvador’s GDP with flows approximating $6 billion annually.
    • Many citizens lack a bank account and digital banking has low penetration.
    • In this scenario, there are multiple intermediaries in the remittance chain who take cuts of as high as 20%.

    (5) Impact on money laundering

    • The implication of this move for money laundering is unclear at the moment.
    • Currently, El Salvador is not considered deficient under the FATF money laundering requirements.
    • However, with large scale cryptocurrency inflows and outflows, it would be expected that El Salvador would comply with the 2019 FATF guidance on Virtual Currencies.

    Conclusion

    • The overall takeaway for India from the El Salvador case is not in the monetary sense at all.
    • This is the wealth that India has in spades and has barely protected with policy.
    • While deliberations continue in India on the monetary and financial regulations around cryptocurrency.
    • It is important that attention be paid to incentives for India’s developers working on key innovations in the space.

    Back2Basics: Bitcoin

    • Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
    • Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
    • The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto.
    • The currency began to use in 2009 when its implementation was released as open-source software.

  • [pib] QS World University Rankings 2022

    The Prime Minister has congratulated IIT Bombay, IIT Delhi and  IISc Bengaluru for top-200 positions in QS World University Rankings 2022.

    QS World University Rankings

    • QS World University Rankings is an annual publication of university rankings by Quacquarelli Symonds (QS).
    • It comprises the global overall and subject rankings (which name the world’s top universities for the study of 51 different subjects and five composite faculty areas).
    • It announces ranking for five independent regional tables (Asia, Latin America, Emerging Europe and Central Asia, the Arab Region, and BRICS).

    Highlights of the 2022 Report

    • IIT Bombay ranks joint-177 in the world, having fallen five places over the past year.
    • IIT Delhi has become India’s second-best university, having risen from 193 ranks in last year’s ranking to 185 in the latest ranking. It has overtaken IISc Bangalore, which ranks joint-186.
    • The Indian Institute of Science (IISc), Bengaluru, has been ranked the “world’s top research university.
    • The top three institutions globally are — Massachusetts Institute of Technology (MIT), University of Oxford, and Stanford University ranked at number one, two, and three respectively.

  • Places in news: Sardar Sarovar Dam

    The Sardar Sarovar Dam is providing irrigation water in summer for the first time in history.

    Sardar Sarovar Dam

    • The Sardar Sarovar Narmada Dam is a terminal dam built on the Narmada river at Kevadia in Gujarat’s Narmada district.
    • Four Indian states, Gujarat, Madhya Pradesh, Maharashtra and Rajasthan, receive water and electricity supply from the dam.
    • The foundation stone of the project was laid out by Prime Minister Jawaharlal Nehru on 5 April 1961.
    • The project took form in 1979 as part of a development scheme funded by the World Bank through their International Bank for Reconstruction and Development, to increase irrigation and produce hydroelectricity
    • Called the ‘lifeline of Gujarat’, it usually has no water for irrigation during summers.

    Answer this PYQ in the comment box:

    Q.Which one of the following pairs is not correctly matched?

     

    Dam/Lake River

    (a) Govind Sagar: Satluj

    (b) Kolleru Lake: Krishna

    (c) Ukai Reservoir: Tapi

    (d) Wular Lake: Jhelum

    A successful model of river water sharing

    • River Narmada is a classic case of Integrated River Basin Planning, Development, and Management, with water storage available in all major, medium, and minor dams on the main river and its tributaries.
    • Its water is shared amongst four party states – Gujarat, Rajasthan, Madhya Pradesh and Maharashtra — in the ratio stipulated by the 1979 award of the Narmada Water Dispute Tribunal.

    How has it saved water for summers?

    • During the monsoon from July to October, the reservoir operation is well synchronized with the rain forecast in the catchment area.
    • The strategic operation of River Bed Power House (RPBH) ensures that minimum water flows downstream into the sea and maximum water is used during the dam overflow period, which is not calculated in the annual water share.
    • These measures help in maximizing the annual allocation of water share.
    • Similarly, in non-monsoon months, the measures for efficient use of the allocated share typically include minimizing the conventional and operational losses.
    • It includes: avoiding water wastage, restricting water-intensive perennial crops, adopting of Underground Pipelines (UGPL); proper maintenance and operation of canals on a rotational basis.

  • Dihing Patkai is Assam’s 7th National Park

    The Assam government has notified Dihing Patkai as a National Park, four days after creating the 422-sq. km Raimona National Park in western Assam’s Kokrajhar district.

    Dihing Patkai NP

    • Dihing Patkai, in focus a year ago for illegal coal mining in the vicinity, encompasses the erstwhile Dehing Patkai Wildlife Sanctuary, the Jeypore Reserve Forest and the western block of the Upper Dihing Reserve Forest.
    • The 234.26-sq. km Dihing Patkai straddling eastern Assam’s Dibrugarh and Tinsukia districts is a major elephant habitat and 310 species of butterflies have been recorded there.
    • The park has 47 species each of reptiles and mammals, including the tiger and clouded leopard.

    Answer this PYQ in the comment box:

    Q.Which one of the following National Parks has a climate that varies from tropical to subtropical, temperate and arctic?

    (a) Khangchendzonga National Park

    (b) Nandadevi National Park

    (c) Neora Valley National Park

    (d) Namdapha National Park

    NPs in Assam

    • Assam now has the third most National Parks after the 12 in Madhya Pradesh and nine in the Andaman and Nicobar Islands.
    • The five older National Parks in the State are Kaziranga, Manas, Nameri, Orang and Dibru-Saikhowa.
    • Kaziranga and Manas are UNESCO World Heritage Sites.
    • They are also tiger reserves along with Nameri and Orang.

  • A clean, green future for Indian cities

    This year, the United Nations Decade on Ecosystem Restoration is being launched, building towards the goals of this decade. In light of this, the article highlights the mitigating potentials of various missions undertaken by the Ministry of Housing and Urban Affairs.

    A networked approach to achieving the SDG

    • The delicate balance between sustainable development and environmental protection is one of the core targets of the UN 2030 agenda for sustainable development.
    • A networked approach to achieving the Sustainable Development Goals has been included in India’s policy and political discourse.
    • The motto of the 2030 agenda — “Leave no one behind” — very much embodies the essence of Gandhiji’s philosophy of sarvodaya through antyodaya.
    •  This guiding principle has long been a part of the execution of the national programmes and missions of the Ministry of Housing and Urban Affairs (MoHUA).

    Achieving SDGs through flagship missions of MoHUA

    • In 2014 the Swachhata movement was launched.
    • It was, in effect, the harbinger of a total transformation of our urban landscape.
    • In June 2015, the Ministry of Housing and Urban Affairs launched flagship mission — Pradhan Mantri Awas Yojana (Urban), Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and the Smart Cities Mission.
    • The SDGs are reflected in the core objectives of these missions.
    • They have achieved their set targets while ensuring that sustainable development is a non-negotiable part of them.

    Ensuring sustainable development

    1) Swachh Bharat Mission (Urban)

    • It focuses on achieving an open-defecation-free India, building solid waste management capacity and bringing about behavioural change.
    • Cooperative and competitive federalism have become the driving force behind this citizen-led jan andolan.
    • It is estimated that the various initiatives under SBM-U can mitigate 17.42 million tonnes of carbon dioxide equivalent of greenhouse gas (GHG) emissions by 2022.

    2) Smart Cities Mission

    • The Smart Cities Mission is aiding technological advancements of our cities to improve governance, sustainability and disaster risk resilience.
    • Smart solutions are being implemented to improve energy efficiency and non-motorised transport capacity in urban centres.
    • The Climate Smart Cities Assessment Framework has been adopted which aims to help cities adapt, collaborate and exchange best practices to achieve international standards for green, sustainable and resilient urban habitats.

    3) AMRUT

    • Under AMRUT, water supply and management, energy efficiency and increased green spaces have been part of the goal in 500 target cities.
    • As of today, 1,831 parks over 3,700 acres have been developed, 85 lakh street lights have been replaced, resulting in energy saving of 185.33 crore units (kWh), and 106 water bodies have been rejuvenated.
    • The mission is likely to result in the mitigation of 48.52 million tonnes of CO2 equivalent of GHG emissions by 2022.

    4) Pradhan Mantri Awas Yojana (Urban)

    • With 1.12 crore houses sanctioned, Pradhan Mantri Awas Yojana (Urban) has focused on new construction technologies that are innovative, environmentally friendly and disaster-resilien.
    • The Prime Minister launched six Light House Projects on January 1, 2021.
    • These are already under construction.
    • Additionally, about 43.3 lakh houses are being constructed where fly ash bricks/blocks and concrete blocks are being used.
    • Overall, the mission has the potential to mitigate around 12 million tonnes CO2 equivalent of GHG emissions by 2022.

    5) Metro rail

    • An energy-efficient mass rapid transit system, is operational in 18 cities with over 720 km of line constructed.
    • Another 1,055 km of new lines is under construction in 27 cities.
    • This network is expected to mitigate around 21.58 million tonnes of CO2 eq GHG from 2015-2022.
    • Cumulatively, the national missions under the MoHUA are projected to mitigate GHG emissions equivalent to more than 93 million tonnes of CO2 by 2022.

    Conclusion

    A progressive track of urban development while keeping sustainability, disaster risk resilience and community building at its core has been the guiding principle of the government. It will help us preserve our environment, restore ecosystems and mitigate the risks posed by climate change in the coming decade.

  • Consumer Confidence Survey (CCS) by the RBI

    The highlights of the Consumer Confidence Survey (CCS) were recently released by the RBI pointing to some all-time lows.

    Consumer Confidence Survey (CCS)

    • The RBI conducts this survey every couple of months by asking households in 13 major cities — such as Ahmedabad, Bhopal, Guwahati, Patna, Thiruvananthapuram — about their current perceptions and future expectations on a variety of economic variables.
    • These variables include the general economic situation, employment scenario, overall price situation, own income and spending levels.
    • Based on these specific responses, the RBI constructs two indices: the Current Situation Index (CSI) and the Future Expectations Index (FEI).
    • The main variables of the survey are- Economic situation, Employment, Price Level, Income and Spending.
    • The CSI maps how people view their current situation (on income, employment etc.) vis a vis a year ago. The FEI maps how people expect the situation to be (on the same variables) a year from now.
    • By looking at the two variables as well as their past performance, one can learn a lot about how Indians have seen themselves fairing over the years.

    Why does it matter?

    • The CCS is a survey that indicates how optimistic or pessimistic consumers are regarding their expected financial situation.
    • If the consumers are optimistic, spending will be more, whereas if they are not so confident, then their poor consumption pattern may lead to recession.

    What was the main finding?

    • As Chart 1 shows, the CSI has fallen to an all-time low of 48.5 in May.
    • An index value of 100 is crucial here, as it distinguishes between positive and negative sentiment.
    • At 48.5, the current consumer sentiment is more than 50 points adrift from being neutral — the farthest it has ever been. It is important to note that even a year ago, the CSI had hit an all-time low.
    • The FEI moved to the pessimistic territory for the second time since the onset of the pandemic.

    What are the factors responsible for pulling down the CSI and FEI respectively?

    • The RBI states that CSI is being pulled down because of falling consumer sentiments on the “general economic situation” and “employment” scenario.
    • So, on the “general economic situation”, RBI finds that there has been a largely secular decline in both current consumer sentiment and future expectations since PM Modi’s re-election in 2019.
    • What is equally worse is that more people expect the employment situation to worsen a year from now — that is why the one year ahead expectation line is below the zero marks.

    Big takeaways

    • These data layout the tricky challenge facing the Indian economy.
    • If the government’s strategy for fast economic growth — expecting the private sector to lead India out of this trough by investing in new capacities — is to succeed, then consumer spending (especially on non-essentials) has to go up sharply.
    • But for that to happen, household incomes have to go up; and for that to happen, the employment prospects have to brighten; and for that to happen, again, companies have to invest in new capacities.

  • Appointment of Election Commissioners

    President Ram Nath Kovind on Tuesday appointed of Anup Chandra Pandey, a retired Uttar Pradesh cadre IAS officer, to the post of Election Commissioner.

    Election Commission of India (ECI)

    • The ECI is a constitutional body responsible for administering elections in India according to the rules and regulations mentioned in the Constitution of India.
    • It was established on January 25, 1950.
    • The major aim of the election commission of India is to define and control the process for elections conducted at various levels, Parliament, State Legislatures, and the offices of the President and Vice President of India.
    • It can be said that the Election Commission of India ensures the smooth and successful operation of the democracy.

    Functions

    According to Article 324 of the Indian Constitution:

    • the ECI has superintendence, direction, and control of the entire process for conduct of elections to Parliament and Legislature (state legislative assembly & state legislative council) of every State and to
    • the offices of President and Vice-President of India

    Answer this PYQ in the comment box:

    Q.Consider the following statements:

    1. The Election Commission of India is a five-member body.
    2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
    3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.

    Which of the statements given above is/are correct? (CSP 2017)

    (a) 1 and 2 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 3 only

    Its composition

    • Initially, the commission had only a Chief Election Commissioner. Presently, it consists of a Chief Election Commissioner and two Election Commissioners.
    • For the first time, two additional Commissioners were appointed on 16th October 1989 but they had a very short term till 1st January 1990.
    • Afterward, on 1st October 1993, two additional Election Commissioners were appointed.
    • The concept of a multi-member Commission has been in operation since then, with decision-making power by majority vote.

    Appointment & Tenure of Commissioners

    • The President has the power to select Chief Election Commissioner and Election Commissioners.
    • They have a tenure of six years, or up to the age of 65 years, whichever is earlier.
    • They have the same status and receive pay and perks as available to Judges of the Supreme Court of India.
    • The CEC can be removed from office only through accusation by Parliament.
    • The election commissioner or a regional commissioner shall not be removed from office except on the recommendation of the CEC.

  • Adoption of COVID-19-orphaned children

    The Supreme Court has directed the States and Union Territories (UTs) to take stringent action against private individuals and NGOs who invite people to illegally adopt children orphaned by the COVID-19 pandemic.

    Also read

    Legal issues involved in adoption pleas for Covid-19 orphans

    SC ruling against illegal adoption

    • The court ordered the government to step in and prevent private entities from revealing the identities of COVID-19 affected children, usually on social media and inviting people to adopt them.
    • No adoption of affected children should be permitted contrary to the provisions of the Juvenile Justice Act, 2015 the court-ordered.
    • It was illegal to invite strangers to adopt children, already traumatized by their personal losses, without the involvement of the Central Adoption Resource Authority (CARA).

    About CARA

    • Central Adoption Resource Authority (CARA) is an autonomous and statutory body of the Ministry of Women and Child Development. It was set up in 1990.
    • It functions as the nodal body for the adoption of Indian children and is mandated to monitor and regulate in-country and inter-country adoptions.
    • CARA is designated as the Central Authority to deal with inter-country adoptions in accordance with the provisions of the 1993 Hague Convention on Inter-country Adoption, ratified India in 2003.
    • It primarily deals with the adoption of orphaned, abandoned and surrendered children through its associated and recognized adoption agencies.
    • In 2018, CARA has allowed individuals in a live-in relationship to adopt children from and within India.

  • Operation Pangea XIV

    More than 1.10 lakh web links, including websites and online marketplaces, have been taken down in the operation Pangea XIV.

    Operation Pangea XIV

    • Code-named “Operation Pangea XIV”, the exercise was coordinated by Interpol.
    • It involved the police, customs, and health regulatory authorities of 92 countries against the sale of fake and illicit medicines and medical products.
    • Indian agencies also participated in the operation, said an official of the Central Bureau of Investigation that is the nodal body for the Interpol in the country.
    • It showed that criminals were continuing to cash in on the huge demand for personal protection and hygiene products due to the COVID-19 pandemic.

  • New geometrical lines discovered in Thar Desert

    Using satellite observations and field visits, two independent researchers from France have identified eight sites around Jaisalmer in the Thar Desert, that show linear features resembling geoglyphs.

    What are geoglyphs?

    • Geoglyphs are large, un-explained geometrical patterns on land usually proposed to be man-made features.
    • The largest concentration of geoglyphs is reported from southern Peru, covering an area of about 1,000 square km.
    • A new paper published notes that the identified geoglyphs in the Thar Desert cover an area of about 6 square km.

    Boha Geoglyphs in Thar

    • The authors’ main area of interest was Boha, a small village 40 km to the north of Jaisalmer where they noticed a series of concentric and linear features.
    • They named these features Boha geoglyphs and suggested that the features could be at least 150 years old.
    • It is however conceivable that they were built at the beginning of the British colonial period, in the middle of the 19th century.

    How are they patterned?

    • The Boha geoglyphs are clearly manmade as the main unit is a giant spiral, but they have been eroded due to the cars running over the lines lately.
    • So, they are clearly not formed by weathering or another natural phenomenon.”
    • The observed features might have been formed naturally, but degraded over time due to both natural and human-related causes.

    Degraded over time

    • The rocky terrain is home to a typical weathering feature, especially over the iron-rich sandstone and shale beds.
    • Here, extreme aridity and high temperature lead to slow geochemical translocation of minerals for centuries, such that the heavier minerals like iron and manganese move away from the lighter minerals.
    • This lead to the gradual formation of alternate bands of harder and softer mineral concentrations.
    • With time the areas with softer materials get slowly eroded, while the harder ones stand out, producing the typical concentric or box-like geometric features.