The Prime Minister of India Publicly Supports Blockchain

The Prime Minister of India, Narendra Modi, has declared before his people that blockchain is an instrument for a rewarding investment.

The Prime Minister of India said concerning blockchain that it is an ‘opportunity in frontier technology.’ This statement made residents anticipate the use of cryptocurrencies.

While addressing the attendees at the India Ideas Summit held on Wednesday and organized by the US-India Business Council, the Prime Minister gave hope to multinational investors who are interested in coming to India.

Blockchain has several chances

In his speech, the Prime Minister approved blockchain as a means of investment in the country.

“Opportunities in technology also include opportunities in the frontier technologies of 5G, Big data analytics, Quantum computing, Blockchain and Internet of things,”

He expressed hope that Indians will take advantage of blockchain since up to 500 million of them can access the internet. With only about 500 million still waiting for internet connection, companies already have a favorable market.

India’s position to foreign tech companies is contrary to China’s. The PM said his administration over the last six years has been geared towards inviting foreign companies to invest in the country.

There have been some reactions to the PM’s statements. A platform for crypto regulatory news in India known as Crypto Kanoon said:

“China is integrating state backed Blockchain network with six public blockchains in the world. It’s important that we embrace public blockchains and bring clear regulation around the whole subject.”

Crypto’s fate is yet unknown

It appears India is trying to be like China in supporting blockchain but its efforts aren’t to be matched with China’s yet. This is because there are no laid down guidelines for the banks and others that would like to render crypto-related services to clients. There is hope in sight anyway since the Supreme Court lifted its long-standing ban in March.

One of the reasons why some banks are still afraid of offering services to crypto businesses is that the country is having a hard time in the economic sector. Typical examples are HDFC and Indusind Bank.

In a seminar organized over the internet last week, Subhash Chandra who is one of those that have held the position of Finance Secretary of India mentioned that crypto should be used as a regulated asset in the country and not as an alternative for money. In response, executives of the crypto industry in India said the government should not think that the rupee will be replaced by cryptocurrencies.

India may not be ready soon to be a crypto-friendly nation as it claims. Integrating the banks to support this move is important. Hopefully, with the recent approval of blockchain by the PM himself, the central bank will become more proactive.

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