India’s National Intelligent Government Institute (NISG) has released its draft National Strategy on Blockchain. He makes ambitious suggestions, such as a central bank digital currency (CBDC) and a national blockchain.
A central bank digital rupee (CBDR) is proposed in a publicly authorized blockchain. India has a track record of large-scale project deployment with nearly 1.2 billion people enrolled in its national digital identity project (Aadhaar). But it only has 582 million bank accounts compared to 1.22 billion mobile connections. Thus, the potential of a digital currency for financial inclusion alone can be seen.
However, an important reason for the CBDR provided in the document is the ability to monetize Internet of Things (IoT) data and other personal data. Therefore, people could be compensated for sharing health, telecommunications and financial data. “Unlocking the value of data in the hands of citizens in a secure way could give a big boost to citizens’ disposable income, ”the NISG said.
The NISG expects Indian blockchain developers and companies to create decentralized applications, similar to Ethereum and EOS, but instead in a regulated blockchain with consumer protection.
Therefore, a nationally authorized blockchain is proposed, where government departments and industry associations execute validation nodes. Propose running a private version of Ethereum, perhaps Quorum or a private version of Hashgraph using Proof of Authority. Ivy Hashgraph technology is not open source, so it can be expensive.
This National Blockchain Platform could offer confidence as a service. Point out some business blockchain solutions that add fingerprint-like hashes to public blog chains. This sets the current status of a block, making a private blockchain even more tamper-proof.
But most of all, it wants the government of India to express its intention to use its own blockchain technology and foster a vibrant sector.
In addition to these two major suggestions, the paper also explores governmental and legislative aspects. In particular, India has restrictions on cryptocurrencies. The NISG suggests that any legislation on digital currencies should address functionality rather than specific technology.
The draft document was prepared after the consultations, and now the NISG intends to have further discussions with stakeholders and receive suggestions.