Blockchain, the distributed ledger, behind cryptocurrencies, is back in discussion again. At Budget2018, Finance Minister Arun Jaitley said that the government would be dedicating time to studying the technology.
Even though Indian government seem to be on tenterhooks regarding declaring cryptocurrency as legal tender, but blockchain is so much more than that and the government is favourable towards integrating the technology.
However, an Indian bank has already taken the first step. L ast week, Yes Bank made the first commercial deployment of an enterprise blockchain solution in India and the second bank in the world to do so.
According to a business journal, Yes Bank uses IBM’s Hyperledger DLT (Distributed Ledger technology) to deploy the R&D project for Bajaj Electricals. The implementation has been done on a blockchain-based smart contract written by fintech start-up Cateina Technologies. They now plan to add 35 vendors of Bajaj Electricals onto this platform to transact on both sides—dealer finance and vendor finance.
Another advantage is that the blockchain implementations are tokenless and there will also be no initial coin offerings. This makes blockchain adaptable for any kind of industry.
Despite the uneasy relationship that is existing between banks and cryptocurrency exchanges, Rana Kapoor, CEO of Yes Bank is surprisingly bullish about cryptocurrencies.
Kapoor said, “Cryptocurrencies will be here forever. We will have imperfections. There’ll be regulatory restrictions. There’ll be a overall process which has to be followed and a system which has to be built with credibility. No currency system is an offset to the monetary system.”
Kapoor added that the budget had also rightly emphasized on the need to focus on future technologies through establishment of centers of excellence in key areas like robotics, artificial intelligence, big data, quantum computing and IoT. This focus was clearly visible in the 100% increase in the budget allocation to the ‘Digital India’ program. He was positive that startup funding would also receive a significant fillip through revised regulations.