The Indian government is preparing a national strategy for blockchain technology. The move has been taken considering the potential of blockchain and different uses cases.
27 November 2019 | AtoZMarkets –India’s government is set to embrace blockchain through the adoption of a national strategy focused on the emerging technology. Responding to a question raised in the country’s parliament, Sanjay Dhotre, minister of state for electronics and IT, said:
“Considering the potential of Blockchain Technology and the need for shared infrastructure for different use cases, an approach paper on National Level Blockchain Framework is being prepared.”
Where is the government finding national blockchain application?
Dhotre explained that the Ministry of Electronics and Information Technology (MeitY) plans to scale up and widely deploy blockchain technology. The minister described it as “one of the important research areas” with potential in areas including governance, banking, finance, and cybersecurity.
He also added that the ministry intends to work with The Institute for Development & Research in Banking Technology (IDRBT) and other government agencies on the initiative. He further added that the ministry is developing a blockchain-based Proof of Existence (PoE) framework for digital artifacts. According to Dhotre, this will be used to authenticate academic certificates, sale deeds, and other documents.
A property registration blockchain solution is already being piloted in Shamshabad district, Telangana. The ministry also referenced other initiatives enabling Cloud Security and trade finance. In June, India’s telecom regulator mandated that all telcos must use blockchain to help protect customers from spam.
Blockchain not Bitcoin
At the moment, the India government seems to be on the side of blockchain and not Bitcoin. This has been the case since the country recently proposed a draft bill banning cryptocurrency trading. As a matter of fact, the finance ministry has suggested a 10-year jail sentence for anyone using cryptocurrencies, but it has yet to become law.
Related: How to buy Bitcoin in India
Moreover, the central bank of India also barred banks from serving crypto exchanges and firms since April 2018. Since then, several exchanges have filed legal petitions to reverse the central bank’s ban. Still, the matter is still pending in the supreme court of India. The next hearing is scheduled in January 2020.
The regulatory uncertainty forced several exchanges to shut shop, including Koinex, Coindelta, Coinome and Zebpay. Nevertheless, just last week, the world’s largest crypto exchange Binance acquired Indian crypto exchange WazirX to serve over 1 billion people of the country.
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