While India’s Supreme Court demands an answer on cryptocurrency regulation from the RBI, blockchain, the technology that supports digital currencies, continues to grow across the country. More and more businesses in India are helping further develop the use of the blockchain, highlighting the country’s appetite to remain at the forefront of technology, even when regulators struggle.
Earlier this month, India’s largest technology business, Tata Consultancy Services, (TCS) announced plans to further develop its blockchain technology abilities and create cross-industry solutions. TCS has already successfully created blockchain-based management systems. However, the intention to build five new blockchain platforms to support various activities between industries, highlights the firm’s commitment to the future of blockchain technology in India.
That news comes as US tech giant, IBM has created a cross-border blockchain payment platform, to help speed up transactions between financial institutions around the world, where the use of blockchain cryptocurrency transactions is regulated. Meanwhile, Facebook and Twitter’s CEO, Jack Dorsey are both investing in the blockchain and cryptocurrency industry.
This raft of blockchain and crypto news comes as Bitcoin, the original cryptocurrency has held above the $4,000 level last week, despite a downturn on Thursday.
Together, it all works to highlight that although Bitcoin and other digital currencies have had a tough 12 months or so, many savvy investors and business visionaries are convinced of the longevity of the system and are willing to back it financially.
But, while appetite for blockchain technology and cryptocurrency use remains strong, not everyone is completely ready to take that next step, including the Indian Government.
Cryptocurrency regulatory deadlock
In February, the Supreme Court of India gave the Government a 4-week deadline to release its crypto regulations. That regulation has been under consideration since April 2018, when the Reserve Bank of India stopped providing services to businesses and investors involved in cryptocurrencies in the country.
That led to a raft of legal cases, filed by crypto-related businesses and being heard by India’s Supreme Court, cases the court has said it will stop hearing, with or without formal RBI regulation on the currency. If the RBI fails to deliver, the court added that it will make its own judgement on the cases and adhere to that, going forward.
Fortunately, while this could represent a problem for businesses and investors interested in developing a cryptocurrency for India or working with them in the country, those who are more focused on the blockchain technology itself, can continue with their plans and investments.
Blockchain and India
Amid the crypto indecision in India, blockchain has gained support and new frameworks are being developed. Technologies have been created to help improve the security and management of data and messages, within single businesses and between multiple ones.
One of the reasons for this is the success of the country’s first Blockchain District of Telangana in southern India. In August 2018, The Telangana State Information Technology, Electronics and Communication Department (ITE&C) signed an agreement with IT services giant, Tech Mahindra. The resulting relationship has helped give India’s business and investor community an opportunity to incubate and develop domestic blockchain startups and companies.
Indeed, a recent report from Nasscom, the Indian IT and BPO industry’s trade association and Avasant, a global management consulting firm, shows that more than half of India’s states are working with blockchain-related initiatives. However, despite this activity, India currently accounts for just 2% of global blockchain startups.
Although blockchain isn’t solely related to cryptocurrencies, the lack of regulation on crypto in the country is undoubtedly holding some businesses back from developing their own blockchain systems and utilising the benefits of cryptocurrencies.
It’s likely the Supreme Court loss of patience with the RBI’s lack of workable regulation on cryptocurrencies isn’t solely due to the need for a formal judgement; its clear to many institutions across India, including the court, that the country needs some regulatory provision for crypto activity, however tentative.
At Red Ribbon we know that India has the potential to support the development of ground-breaking uses of blockchain technology. Our understanding of the economy, combined with our business experience, means we can help others share in that potential and opportunities as they arise.
Red Ribbon CEO, Suchit Punnose said:
India’s appetite to remain relevant in the continually developing industry of technology knows no bounds. The lack of regulation on one level hasn’t stopped the growth of blockchain, on another.
Spurred on by the success of one India state in the creation of new blockchain technology, more than half of the country’s regions are increasingly supportive of tech startups who can prove their ideas can benefit India on a domestic level and a global one, too.
Red Ribbon epitomises India’s attitude towards change and opportunity; we always assess every opportunity thoroughly and will take calculated risks on new and developing industries. Eco Hotels and Modulex are just two examples of how we’re willing to drive forward in industries we believe in, that will prove supportive of a sustainable future, for India and across the globe.