In my country our prime minister announced PM Kisan Scheme to directly benefit the farmers and the people who are associated with agriculture. This has been distributed in three installments directly to the beneficiary's bank account. Government employees are responsible for it, but to ease it on covid lockdown relaxations were given on applications and approval. This is being used by the brokers and has scammed 110 crore rupees. Now investigation has been started and 32 crore rupees have been retrieved directly from the banks.
My question, if this has been done through bitcoin or any other cryptocurrency what'll be the remedy. Here atleast some amount is being recovered, as the transactions were made through a centralised banking services. This way does governments encourage the usage of cryptocurrencies in the future on official needs.
Source :
The Indian Express While the transactions weren't publicly available in this case because they are banking transactions, there's this centralization and the basic principles of how banks work that allowed to identify the people and accounts behind the scam and made it possible to retrieve some money. If it was all done in BTC, the transactions would all be there for anyone to see, but there would be no way to reverse them or to make the scammers give that money back. With no ID tied to Bitcoin wallets, I really don't think this could play out better than it did with banks. That much data just would not be available to the authorities if the money was sent in BTC.