It would be fun to see somebody create an app that scans the 500 and 1000 rupee notes serial number and uses blockchain to digitize that money.
After scanning a 500 note you would get 500 rupees issued through the color coin protocol for instance. If i send you 1 rupee, it would represent 1 rupee + the serial number of that 500 rupee note. If somebody else tries to scan that note again, the blockchain doesn’t issue any coins because it was scanned before.
There are a few problems with this: The government or counterfeit money, but those are the least of people’s problems right now. Also there is the issue that most people who have cash probably won’t have a smart phone, so if this could also work with feature phones, it would help.
Hmmmm how do you solve the double spend problem? Aah yeah, they should burn the physical currency one by one and the app uses their smartphone camera to confirm it, once that is done the crypto is issued by the app. Sounds like a lot of hassle, but standing in a long line or having a worthless asset is even worse, I would say.
A cocktail of machine learning, blockchain and a match could fire back at the people who thought that it was a good idea to suddenly make notes worthless. easier said than done, but India got the world’s highest skilled devs…
Would this be legal tender? I think if people vote with their money it is