Blockchain has revolutionized the way banking services and other digital transactions are carried today. The common ledger technology not only makes the transactions secure but the absence of a third-party makes sure it is reliable. Moreover, the distributed characteristic ensures significant data integrity. From retail to insurance to investment banking every other industry is scrambling for the adoption of blockchain. Being the eye candy, it is highly unlikely that the very recent discussions about bitcoins and cryptocurrency will take a mention of the blockchain. Rather the bitcoin works on the blockchain platform. The whole idea of not having to involve any third-party soared up the popularity of blockchain.
Talking about digitization by blockchain, India saw demonetization a year back that led to the increased digital transactions. Consequent to this unprecedented move, fintech startups have initiated to take a leap and build an additional market for banking, insurance, and other investment services apart from their app-based services. Quite likely, it is going with the blockchain to shape this new phase. While the government is only waking up to this technology, financial organizations have already taken control. Meanwhile, GOI launched various digital platforms including Aadhar digital identification and BHIM (Bharat Money Interface) for monetary transactions. This will support blockchain adoption in the country considerably.
Unified Payments Interface (UPI) has been continually encouraged by the Reserve Bank of India. In another step, the Andhra Pradesh government is setting up a Blockchain Centre of Excellence thereby inviting startups all around the nation to join the network. Other states are following the suit. The think-tank of the nation NITI Aayog is already planning to establish a fully functional blockchain infrastructure. All the efforts in this direction facilitate proper and timely error-free distribution of subsidies, efficient banking transactions and lend helping hand in insurance schemes.
Recently, Google threw the competitor of BHIM called Tez which works on UPI and is majorly functional for digital transactions. These platforms not only provide safe transactions but increase the consumers’ confidence to shift to the digital network. The credibility of the process is another emolument that lures an individual to function digitally.
Collaboration between fintech companies and banks has taken its pace via blockchain technology. The tech-savvy population awaits a revolution and one that is error-free with positive results and minimal headache of credibility and security. With each passing day, the percentage of online population is growing. In order to manage such large chunk, blockchain is the perfect choice. Fintech companies are using artificial intelligence and concept of Internet of Things to build and sustain banking, insurance and personal finance options.
The trend discarded previously is now the need of the hour. It has been gaining traction amongst banks and regulators way too fast. The industry now is working to be an indigenous client of blockchain. Moreover, the GST has been providing two percent discount for digital payments. Blockchain has been long ignored by the lawmakers and any more delay is not doing any good. This is a great news for those who are keen to move illiquid assets. The novelty of blockchain allows them to escape the scrutiny which could previously take ample of time and made the process only more cumbersome.
With all the fuss around blockchain, it is highly advisable to hold hands with it and walk forward. India can be a digital country sooner than expected if it goes the blockchain way. It is the leader in financial services and demands the replacement or improvement of old systems. To become a leader in the digital world, fintech must deliver upon its image of the targeted venture capital investment and take India with it. Much sooner than world expects, India can be sustained digitally only that there are some roads that need to be walked upon.