- The government of India has released a National Strategy on Blockchain draft
- The government wants its resident to create decentralized applications on a regulated and protective blockchain
National Strategy on Blockchain has been published by India’s National Institute for Smart Government (NISG). The 28 pages of the report make ambitious suggestions regarding the national digital currency and a national blockchain. The report includes an overview of blockchain technology, challenges to adopt the country’s technology, technological challenges, and a forecast period of 2017-2030. The report also anticipated what essential national-level services would be integrated with the technology. Such services include eSign, ePramaan, and DigiLocker.
National Strategy on Blockchain also mentions for CBDR
According to the National Strategy on Blockchain, the Indian government is seeking a Central Bank Digital Rupee (CBDR). The demand for the CBDR is proposed on a public permissioned blockchain regulated by the government. The country is already having a track record of rolling out large scale projects. In which around more than 1 billion Indian residents enrolled in its Aadhaar national digital identity project. However, it is observed that there are 1.21 billion mobile connections, but only 582 million bank accounts. Indeed, the aforementioned fact is showing the potential for a digital currency for financial inclusion.
Simultaneously, the CBDR mentioned in the document can monetize Internet of Things (IoT) data and other private data. Indeed, the residents could be compensated for sharing health, telecoms, and financial data securely. Such unlock of the value of data could boost the resident’s disposable income.
The reason behind the proposal of blockchain technology
Following the National Strategy on Blockchain document, it seems like the NISG envisions Indian developers and firms building decentralized applications. The government wants India to create such decentralized projects but on a regulated blockchain with consumer protection. Hence the proposed blockchain can help government departments and industry associations to run the validator nodes. The proposal demands to run a private version of Ethereum, Quorum, or Hashgraph using Proof of Authority.
The National Blockchain platform only focuses on offering ‘Trust’ as a service by making a private blockchain more tamperproof. But the main concern is the residents of the country want the government to signal its intention.
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