While RBI introduces blockchain with its regulatory sandbox, cryptocurrency still hasn’t made its way into the system. Recently released drafts highlights RBI’s terms for cryptocurrency stating “may not be accepted for testing”. Cryptocurrencies have been facing challenges in India since its ban from all banks across the country in mid-2018. While most of the Crypto-institutions have been forcefully shut down, some of those have moved to crypto-friendly nations. Indian central bank’s resistive point of view on digital currency reflects in its statements year after year since 2013.
With lack of enthusiasm in this sector, crypto may not be part of Indian financial system anytime soon. But focusing on the positive segment, with inception of blockchain National Payment Cooperation India can hit a massive improvement. Indian banks association which includes 10 major banks with 54 other banks known as stakeholders of NPCI have been working for the same cause bringing Distributed Ledger Technology into their working algorithms. Fintech companies will not only bring quality boost into the system, but will also be working on research and development in innovative financial products or services within a well-defined space and duration.
Fintech markets in India are growing swiftly. Major Indian players predict industrial research to surpass value of 1 trillion by 2030. India is leading with investment of more than $6 billion since 2014 in Fintech ecosystem. This particular sector has immense potential if brought into existence with new and high-tech technologies like blockchain. Digital payments have been encouraged since demonetization and results of the same can be observed with the growth of The National Electronic Fund Transfer system which has increased almost 5 times since 2016. This particular sector has immense potential if brought into existence with new and high-tech technologies like blockchain.
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