The central bank of India has recently been showing more interest in adopting blockchain technology instead of using Bitcoin and related cryptocurrency. A step, that may be similar to the one followed by China regarding crypto adoption.
Blockchain? Yes. Bitcoin? No.
It was recently announced, by the national payment corporation of India, which is an RBI backed umbrella organization for operating retail payment and settlement system in India, that it was considering adoption of a blockchain technology to improve their payment network.
This national body, which receives payment from ten banks across the country, released a notice that invited bidders to offer their blockchain solutions as their potential “Liaisoning Consultants.”
This announcement can be used to draw the inference that NPCI is interested in developing an alternative blockchain, that would provide competition to the original Bitcoin blockchain. This would be done without offering any incentivization, as it would have central control over the validation and addition of blocks. In other words, NPCI would use blockchain to handle records in the same way, that they have been doing with their existing database.
The central bank noted the stance on its interest in adopting a blockchain technology via a tweet in December 2017 by Subhash Chandra Garg, which said that:
“Cryptocurrencies like bitcoins are neither currency nor coin. Not legal tender in India at all. Trade in these currencies has assumed the character of classical Ponzi schemes. Limited supply and uninformed demand make every new investor assume a higher risk. No underlying real value.”
This recent stance of the Indian central bank can be compared to the stance taken by Jamie Dimon, CEO of JP. Morgan Chase&Co., that rejected and defamed Bitcoin and then changed the last two months by creating the JPM coin. Even though this may seem like a commendable action, there is no need to condemn or ban the use of this technology that has garnered our interest.
The central bank of India is taking an identical stance and adopting a blockchain solution for aiding transactions in the country while banning cryptocurrency.
The blockchain technology is being applied in many facets of our life, however, India is expressing hypocrisy as it condemns the adoption of cryptocurrency and yet conceives various means to use it for the financial system.