India Needs to Capitalise on Blockchain Revolution, Experts Say

Cryptocurrencies have shown the outstanding potential of blockchain technology to boost global finance. Having been on the scene for more than a decade, digital assets have revolutionized other sectors as well, from industrial safety to public data management. Bharat tech companies and desi society have the experience to take advantage of the trend, should the Central Government decide to regulate crypto in a clear manner.

Not Just another Wave of the Digital Revolution

When computer technology brought around ground breaking changes in industrial production and mass communication, India was not ready to play a more fitting part among other global powers. In an opinion piece (co-signed by a sitting Sansad legislator), an overview of recent digital industry events argues that the Union now has the know-how and experience to take a place at the forefront of the current digital transition.

When Bitcoin was launched in 2008, it was a challenge to existing banking systems and their lack of transparency that led to the financial crisis at the time. Today, with a total market value of over $ 2.5 trillion, crypto currencies stand for a lasting revolution beyond financial markets.

Secure payments with crypto assets are used from online trading to long-term investment and from personal (peer) transfers to some of the best online lottery in India, among other offshore gambling channels and websites like 10Cric.com

More importantly, however, the underlying blockchain technology has proven applications – ranging from data privacy to network security and from transparent public governance to crowdsourcing as an attempt to build a fairer society.

Blockchain has testified its potential to radically change the economy and inspire tomorrow's entrepreneurs. While the Centre is still hesitant on whether or how to regulate crypto technology, desi digital and fintech industries are anxious to see these policies pave the way for long-term development.

India has an ample amount of software engineers, digital startups and the necessary IT support structure to realise its potential. It is time for public regulators, legislators and the banking system to recognise that the nation stands to lose more if crypto and blockchain are not exploited in a transparent and regulated manner.

Cryptocurrencies – an Opportunity Rather than a Threat

The world's most famous cryptocurrency, Bitcoin, started with just a fraction of a cent in initial value. In the Spring of 2021, it reached $ 65,000. Since the start of the global Covid pandemic, crypto markets have grown almost 5 times.

China's high profile attempt to ban the use, trading and mining of crypto assets has ultimately turned into a hiccup in crypto's constant growth. It only really brought to the forefront other nations which tolerate or even stimulate digital finances. Plans to introduce a digital Yuan do not only go against private foreign crypto assets, they contradict the very essence of a decentralized peer-verified digital coin.

RBI's own push for a digital Rupee does not really help. And while attempts to block crypto transactions were overturned by the Supreme Court in 2020, to this day and under more pressure, Bharat banks continue to avoid cryptocurrency deals. They do it in fear of blocked assets and possible sanctions rather than in wait for proper legislation and clear regulation of the sector.

Despite some evident short-term volatility, crypto assets have proven their perennial stability, in the current critical markets more than ever before. What is more, their security protocols and inherent technological safety go against accusations of potential illicit activities being financed with crypto. Especially if operators adopt a strict Know-your-customer (KYC) approach, blockchain provides more security than any other transaction technology.

The time has certainly come for the Indian Government to regulate crypto assets and put some order in blockchain-based economic and industrial segments. Coherent rules will provide clarity and a vision for the nation's digital economy, giving it a fairer chance in the global cryptomarket competition.