Noida: Imagine a world operating on cryptocurrencies and a parallel stream of jobs created because of the digital asset. Preposterous? Those days – rather years – are not too far ahead. Crypto assets serve as digital gold or tokens powering decentralized applications. They could be used for transfers, remittances, trading, lending, capital raising, et al., potentially impacting industries ranging from law to logistics, media, and cybersecurity, is his moot point.
One step which can be attributed to a tech tsunami in the Indian banking sector is Reserve Bank of India’s recent recommendation to allow large NBFCs – with over 10 years in the running and asset size of INR 50,000-plus crore – to be eligible to become banks. The positive effects of these advancements have spilled to the demand side as well. Fintech has fuelled easy banking trends, by marrying advanced technologies, like AI/ML to the consumer psyche.
The fourth session of the banking and finance summit organized by APAC media had witnessed good traction among the audience. Titled as ‘Cryptocurrency and Blockchain Impact for BFSI’, the session was moderated by Kanishk Gaur, Founder, India Future Foundation. Prasanna Lohar, Head – Technology Innovation, DCB Bank, Sharat Chandra, Vice President – Research & Strategy, EarthID, Anirudh Rastogi, Founder & Managing Partner, Ikigai Law, Khushbu Jain, Senior Advocate in the Supreme Court of India and Kapil Jain, Co-Founder & CBO, Cryptomintr were the speakers.
Key highlights of the discussion
The panel had detailed discussion on the need for a regulator when it comes to crypto. While few expressed concerns on the digital KYCs others were curious to know whom to be questioned for any malpractices.
The panel agreed that block-chain had made the job easier as it had decentralized many operations and in fact, removed the back-office and middle-man work.
There were discussions on how an individual having crypto could be found guilty with 10 year jail term in 2019 versus a regulation which is happening today where investors are asked to declare their investments.
The panel felt that the banks in India are keen to innovate and experiment on block-chain technology. A panelist also recalled how major 10 banks had recently formed an alliance based on financial block chain technology.
Quoting the ways Indian advertisements are managed and most of them adopt a self-regulatory approach, the Crypto sector is said to be expected to have a self-regulatory approach.
Lack of financial literacy among the citizens and lack of guidelines in cyber security were also discussed in the session.
Most of the panelists accepted that blockchain is here to stay and banks should look at the technology on an immediate basis with a long term impact.According to them even though if not completely, at least part of the operations might be driven by a blockchain technology soon.
The panel also said, there needs to be a collaborative approach among all the stake-holders in India to have an effective crypto currency aspect.
There were also discussions around converting the crypto to another form. Many said that when the Reserve Bank of India has ensured that the sale can happen only after the conversion in INR, more trust will come on crypto.
On the whole, all the panelists were keen to have some currency which is authentic. As today, authenticity is keen in front of the Indian judicial system.
Swaminathan B
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