Apart from cryptocurrencies, the use of Blockchain in other works is also increasing rapidly. This is the reason why experts say that in the policy discussions in India, attention should also be paid to its widespread use, because with the excessive use of this technology, new legal and governance related challenges are emerging.
Where is blockchain being used in India?
In India, blockchain is being used in areas like document verification, digital credentials, land records and supply chain traceability. According to the Economic Times report, Hardeep Sachdeva, senior partner of law firm AZB & Partners, said that most of the policy discussions in India crypto Assets continue to be mentioned because they raise concerns about investor protection, financial stability, taxes, money laundering and cross-border flows. But he said that this could miss a big opportunity to use blockchain as a digital infrastructure.
Hardeep Sachdeva said, the scope of the policy should not be limited only to whether a token is tradable or whether it will be taxed. It should also consider issues like data governance, interoperability, auditability, cyber security, implementing smart contracts, fixing accountability, standards, public-private partnerships and legal status of records kept on distributed ledgers.
Use of blockchain in many government works
India has started using blockchain in many government functions and has also created a National Blockchain Framework (NBF) to help its adoption in administration and industry. As this technology is becoming a part of a larger digital ecosystem, legal experts say that discussions on policy can no longer be limited to crypto assets only. In this, it is also important to pay attention to the legal and administrative questions related to the large-scale use of blockchain.
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