India’s RBI has come up with a new plan to address the financial turmoil in the country.0 After the banknotes swap turned into a national disaster, it is evident the shift to a cashless society will require a different method of approach. The RBI’s new plan involves using blockchain technology to issue a digital rupee. A new report by the bank’s research arm states how “the time is ripe” for blockchain technology adoption in the country.
A Digital Rupee May Come To India Soon
It is not entirely surprising to see the RBI look at other means to force a cashless transaction in India. Pushing the swap of old banknotes to the new ones did nothing to end corruption or potential money laundering in the country. A new solution has to be found, and blockchain technology is being considered as the right way forward. Issuing a digital rupee could hold a lot of merit, and solve a lot of issues associated with cash usage in the country.
One of the biggest concerns people should have is how a digital rupee will solve the current financial problems, though. The vast majority of Indians rely on cash transactions, and issuing a digital rupee will not necessarily change that situation. Issuing the digital rupee to those with limited or no access to a bank account or payment card will be quite challenging, to say the least.
India is a country where blockchain technology is of keen interest to financial experts. Yes Bank announced their multi-nodal blockchain transaction feature not too long ago. Axis Bank became the nation’s third lender to use blockchain technology for their operations. All of this goes to show distributed ledger technology can shake up the financial world in a positive manner, and India is readily exploring how this can be achieved.
RBI’s research arm released a new report which indicates the time is now to embrace blockchain technology in the country. Moreover, the institution feels DLTs can address certain limitations of current financial services processes in a modernized manner. Notably the tamper-evident recording of a linked transaction history is of great appeal.
Moreover, using the blockchain allows for India to become a cashless society, which is still the top priority for official as of right now. It remains unclear if new initiatives will be launched to push this technology into the mainstream in India, but all signs point towards such a move shortly. Additionally, the focus on blockchain technology seems to be another way to dissuade investors and speculators from getting involved in Bitcoin.
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