Bitcoin, Ethereum, and other cryptocurrencies have gotten a lot of attention in India and throughout the world amidst the uncertainty surrounding Covid-19. Many people believe that digital currencies (including private cryptocurrencies) are the way of the future. In the absence of restrictions, however, cryptocurrencies have been relegated to a speculative asset class with high volatility.
According to analysts, the cryptocurrency sector presents India with a significant growth opportunity, but positive rules are required to realize its full potential. According to experts, effective regulation and ease of doing business can help India become the world's largest crypto, blockchain, and Web3 leader.
Experts also said that India might learn from Dubai in terms of fostering crypto and blockchain-based startups and businesses in the country. Dubai is largely regarded as a global crypto powerhouse, having a welcoming administration, expat-friendly policies, and infrastructure, among other things. A clear and welcoming policy for investors and businesses can help India leapfrog the competition in the crypto market.
But I have some eyebrows raised in the chaotic buzz of cryptocurrency, NFT, Metaverse, and web 3.0, All of these are absolutely going to be mainstream sooner or later. Yes, Regulators need to move fast to catch up and secure these technological revolutions for society and the opportunities are endless in this new digital domain.
But..But.. I think we all are forgetting the central pivot of all these shiny techs, BLOCKCHAIN. It is the most real and most vital piece of technology which is maybe getting traction from startups, MNCs, and techies but Government needs to come fast with the Blockchain governing Act not just some policies.
And I think which country comes first to win the race of the next 20 years digital world ! So I have some questions and opinions why Government first look at Blockchain law rather than cryptocurrency bill :
First, coming to revolutionize the legal system in India, Can Blockchain technology be used for the digital stamp duty - electronically registration of documents?
For example, Karnataka is going to use Blockchain for property registration, and a pilot project of the same happened to be in one Haryana town.
As happened back in 2016 Jio's 4G plan for all & UPI combine, digital payment system ramped up, can Govt with the boom of Blockchain tech companies bring De-Fi in masses which will be easy for cross border payment processing, Interoperable, lower the trade finance and smart contract for the same effect?
Govt is coming with digital health infrastructure so my question is that health and a lot of other personal data fed to govt and big tech, Can We use Blockchain by solving the problem of Interoperability & securely share the sensitive health data, the question of this challenge in "Centralise or Federate "?
Digital commerce is in the next evolution phase in India. But as India has long roads, many intermediaries in between the manufacturer/ service provider to the consumers so Can e-commerce companies can employ blockchain, to create an automated system for managing invoices from and payments to its third-party freight carriers & other intermediaries.
As it can be viable for the likes of Delhivery, EkartLogistics, and e-commerce players. This is a case example of Walmart Canada, as in probably 2018 started as a now they are successfully renovating supply chain management.
All my queries come from the same joint point of Blockchain so we can implement Blockchain in our Whole digital infrastructure in India. I think rather than Cryptocurrency, NFT, metaverse, web 3.0, self-driving cars we should invest more in underlying Blockchain tech to solve real problems.
So, shouldn't the government focus more on policy for Blockchain technology and implementation of this tech, creating a proper Regulatory & Compliance Authority and also create separate legislation on the ambit of Blockchain only and related data privacy, payment, infrastructure, Media & Entertainment, health care, and other elements?
Share your take and opinion on this and let’s move this conversation to the regulators!