The Prospector

WEEKLY INSIGHTS: TUESDAY, 12 DECEMBER 2017

December 12, 2017

Reading Time: 2 minutes

Your weekly digest of foreign policy commentary:

Reading Time: 2 min read

Raja Mohan argues that India needs to accept and adapt to the integration of Europe and Asia. Image credit – paulprescott / deposit photos

ASIA COMMENTARY

 

Raja Mandala: After Indo-Pacific, the Eurasian Idea, The Indian Express, by C. Raja Mohan, Director of Carnegie India

“If Indo-Pacific is an idea that gained traction during 2017, Delhi must now cope with another expansive geopolitical construct — Eurasia.”

  • C. Raja Mohan argues that India needs to adapt to the growing construct of Eurasia. He notes that:
    • China is rapidly integrating Europe and Asia, by (1) exporting capital to central Europe for connective infrastructure development, and (2) presenting itself to Central European states as an alternative partner to the EU and Russia.
    • Global events also point to the integration of the two continents, including the: (1) opening of Iran’s Chabahar port; (2) annual gathering of heads of state of the Shanghai Cooperation Organisation; and (3) annual summit of the C-CEEC organisation, which promotes cooperation between China and East and Central Europe.
    • India can no longer focus on bilateral relations with France, Germany and Russia, while neglecting larger groupings.

GLOBAL COMMENTARY

 

The Bitcoin Bubble, The Interpreter, Lowy Institute, by Stephen Grenville, former Deputy-Governor of the Reserve Bank of Australia

“Bitcoin’s acceptance hasn’t gone beyond novelty value — its 10-minute processing time and limited processing capacity are unacceptably inconvenient…”

  • Stephen Grenville critically evaluates the potential of Bitcoin as a preferred currency, pointing out that:
    • Bitcoin’s future remains highly debatable because it has failed to function as a medium of exchange, a unit of account and a store of value, which are the three main functions of a traditional currency.
    • If Bitcoin intends to supplant traditional currencies, it needs to be cheaper for issuers, have an assured stable price over time, and have faster processing times.
    • Countries should begin formulating policy to manage Bitcoin. A sudden loss in its value may have global financial impact, especially since 16.7 million Bitcoins have been issued and the current value of the outstanding stock is more than USD 167 billion.

Written by Malinda Meegoda and edited by Anishka De Zylva.

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