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 There would be a minor issue about the transparency because even though transactions would be stored and listed, if they will use bitcoin, the transaction made cant be undone once confirmed. There could also be some sort of ghost accounts in which the corrupt and greedy politicians together with their underlings could produce, just to get more money.
In our country, there are many cases from graft and corruption wherein they will make an account using someones name to get the funds. They usually use the name of the dead for their wrongdoings. They could use this method too. Creating ghost accounts and sending cash aids to those are irreversible and cant be traced, making it a great scapegoat, because their identities wouldnt be at stake.
In addition, if bitcoin was used the time your government cash aid has been scammed, it would be most unlikely to get the money back because of bitcoins decentralized nature that values anonymity. And like what I said, once a transaction is confirmed, it cant be taken back, as they could use many tools to make the address of the receiver untraceable. Unlike in banking wherein, they could freeze the account of the receiver and trace the transaction history.