The relationship between India and the blockchain industry has been a rather complicated one as the country has been under criticism recently for failing to include laws that benefit the crypto industry and instead putting in regulations that have stifled the industry, leading to closing down of several firms and others bein forced to move their operations overseas with there being talk of a full-on crypto ban.
However, it now seems that the government might be exploring blockchain in itself as it was reported on August 19, 2019 that the government of the state of Maharashtra is preparing a regulatory sandbox that will be used for the testing of blockchain solutions for various applications and this, many think, could be the start of larger-scale blockchain application within the country.
Blockchain in India
According to the published reports, the government will apply blockchain technology in various aspects such as vehicle registration, document management, supply chain and agricultural marketing which are aspects that blockchain has seen great use in the last few years.
This development will be led by the Maharashtra Information Technology Directorate which has already budgeted $1.4 million for blockchain adoption for the year 2019 to 2020 with $560,000 already been approved by the implementation committee.
Considering the reputation India already has with regards to blockchain, this could be a sign of progress, especially given that Maharashtra is the second largest state in India and contains the capital city of Mumbai as well as housing 114 million people.
“The state government is adopting a cutting edge technology to help enhance efficiency in the governance. Already the government has completed its first blockchain pilot in the fields of health, supply chain, documents and SSC certificates. A detailed report has been prepared to go in for extensive use of blockchain technology in various government departments. A regulatory sandbox, which will be a common framework for adopting blockchain technology, will be prepared in next five to six months,” said State IT department principal secretary S.V.R. Srinivas.
By implementing development such as this, it could lead to the widespread usage of blockchain across the country and should that happen, it could trickle down into the government seeing the benefits of cryptocurrency and perhaps, better laws being put in place in that regard.