Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
India’s government agencies are drafting a suitable framework dubbed as the “National Level Blockchain Framework”.
While major economies across the globe are pushing for blockchain adoption, Asia’s third-largest economy India is having similar plans. As per the latest report from India Times, the government of India is working on a national blockchain strategy.
On Wednesday, November 27, the publication reported that India’s Ministry of Electronics and Information Technology (MeitY) is considering the application of blockchain technology across multiple sectors like banking, governance, finance, cybersecurity, and others.
Sanjay Dhotre, the Minister of State for Human Resource Development, Communications and Electronics and IT, said that his department is working on a “National Level Blockchain Framework”.
Well, although not on a larger scale, a few Indian states are already working on different blockchain applications. India’s Ministry of Electronics is already supporting a blockchain project dubbed “Distributed Centre of Excellence in Blockchain Technology,” and working in partnership with other government agencies.
India’s state of Tamil Nadu is working on a state-level policy for blockchain and AI. The Tamil Nadu government is currently exploring ways to implement blockchain in solving governance issues and other service delivery. Another state of Telangana is working on implementing blockchain in property and land registration. Besides, it also plans to use blockchain technology in cloud security, trade finance, and Know Your Customer (KYC).
Dhotre added that his ministry is currently working on Proof-of-Existence (PoE) framework for different use cases such as authenticating sale deads, academic certificates, and other documents. He said:
“By using PoE framework, [a] solution is developed to authenticate academic certificates. Blockchain technology has also been used and PoC [proof-of-concept] is developed for vehicle life cycle management and hotel registry management”.
Yes for Blockchain, No for Crypto
However, India is more or less following China. While the country has a progressive stand towards blockchain, it has an opposite view on cryptocurrencies. Earlier, India proposed a draft bill that could ban crypto trading in the country. The draft bill also suggested a 10-year jail term for anyone using digital currencies.
In the last two years, due to the strict approach and crackdown of the Indian government, a number of crypto exchange and trading platforms had to close their operations. Besides, India’s central bank also barred all the registered banks to cut down their ties with such platforms. This resulted in a massive crunch in fiat deposits at the exchange leaving their businesses dry.