Financial services have been disrupted by Blockchain unlike anything else in the recent history. Since the rise of Bitcoin, the sector has been arguing on the impact of blockchain and its future. Some see it as the solution for all the wrongs, while others fear the unknown and the disruption it might have on the industry. One thing that everyone agrees on is that Blockchain is not going anywhere.
The recent collaborative report by FICCI and PWC stated that blockchain technology can reduce transaction costs for schemes launched by the governments.
Talking on the development of blockchain technology in India, the report stated, that even though slowly, India has initiated implementation of the blockchain technology. Andhra Pradesh, for instance, recently announced partnership with Swedish company ChromaWay to protect citizen data on a blockchain. Apart from citizen data, the state government of AP is also exploring use cases in smart cities and transportation services.
The report further added the use cases of blockchain technology. It said blockchain can help solve the biggest problems in the country, including, voting, supply chain visibility and citizen registration.
Despite all the talks and predictions, blockchain is at its infant stage in the finance sector today. The technology, therefore, have had negligible impact on corporate treasury professionals.
Over the past year, many banks have announced the completion of POC experiments and pilots that use the blockchain technology. Many banks, including the likes of American Express, have started adopting new technologies like Ripple, instead of SWIFT.
The blockchain technology can also be used to manage land records, smart cities and most of all, tracking air pollution, said the report. The report further stated that India loses 1.3 percent of its GDP due to confusing land titles.
To improve the potential of blockchain technology and reach the point of large-scale implementation, a structured approach along with sound policies, governance, talent incubation is needed, the report concluded.