How Blockchain and Cryptocurrencies Could Help Grow the Indian Economy
Nov 12, 2017 Posted / 9943 Views
For the quarter ended June of this year, India’s GDP grew by for Q1 2017 is 5.7 percent, down from the 7.1 percent growth reported for the same period last year. Despite the slowing GDP growth, India is still among the top five fastest growing economies in the world. As experts predict, India’s economy will recover on the back of the various economic reforms that the government has pushed. For instance, the demonetization policy and the introduction of the Goods and Services Tax, or GST, are showing positive signs.
While the average Indian has suffered from the effects of the reforms, it’s worthy to note that most of these steps are to curb corruption and increase the ease of doing business in the country. And speaking of increasing the ease of doing business, curbing corruption and increasing transparency, the use of the Blockchain technology is being explored. The market potential for the use of Blockchain and cryptocurrencies in India is exciting. For reference,reports surfaced June of this year that India alone accounted for roughly 10 percent of the global cryptocurrency trade in the preceding month.
The Andhra Pradesh government is also collaborating with a Swedish start-up to build a blockchain-based solution for the state’s land ownership and acquisition system, which has long been dealing with frauds. In addition to the state of Andhra Pradesh, the state of Telangana is also working on moving government data onto the Blockchain technology. Additionally, some banks in India have started using the Blockchain technology to enhance secure transactions and improve confidentiality. For instance, the ICICI Bank performed India’s first trade transaction and overseas remittances using Blockchain in October 2016. Other banks have since followed suit with YES Bank, Kotak Mahindra Bank and Axis Bank leveraging the technological innovations that power bitcoin and other cryptocurrencies to improve the delivery of their services.
In addition, India’s demonetization policy from last year spurred the demand for digital payments. However, it has been difficult to sustain the growth in digital transactions in India because of the high cost of transactions for both merchants and consumers merchants. The problem of cost has been one of the things slowing the growth of the digital delivery of financial services, but this is a boost for the cryptocurrency and Blockchain community.
Having perhaps realized the potential for Blockchain and cryptocurrencies to aid financial inclusion, effectiveness and affordability, the Indian government is making efforts to legalize and regulate the cryptocurrency market. Amongst the effort is the setting of an advisory committee by the Securities and Exchange Board of India (SEBI) that will conduct research on Blockchain and other technologies. The aim of the project by SEBI is to determine whether the technology will be integrated into its own regulatory processes. Building on this move by the government, there has been an increase in the number of digital currency and Blockchain start-up projects to help expand digital payment system in India. One of those platforms is BitIndia.
BitIndia is a user-friendly digital currency platform that offers wallets, which hold cryptocurrencies like Bitcoin, Ethereum, Ripple and Litecoin. The platform has a mission that centers on making the digital currency a widely acceptable in India with the creation of an easy to use the platform. Their vision is to make digital payment the first in the mind of an average Indian and compete globally.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.