T.V. Somanathan has stated that there should be no concerns about the usage of blockchain in sectors other than payments or currency. He emphasised that “the government’s blockchain policy has nothing to do with its policy regarding crypto assets or virtual digital assets.” Somanathan noted during a post-budget engagement that the government of India had nothing against blockchain technology, which is an essential technology. He mentioned that the Reserve Bank of India’s (RBI) digital currency – CBDC, or central bank digital currency – will be built on a form of blockchain technology.
According to the Finance Ministry Secretary, the Coffee Board of India has also established a blockchain-based system to identify certain varieties of coffee from specific areas so that growers may receive a better price if evidence of origin is provided. The government—the Coffee Board of India—has created a blockchain system for identifying certain types of coffee from specific fields so that they fetch a premium price based on the availability of evidence of provenance, “he explained.
Meanwhile, former SBI chairman and seasoned banker Rajnish Kumar stated that India is not the only country facing the issues that cryptocurrencies entail. “We are not the only country in the world dealing with this new beast known as cryptocurrencies,” he added.
He also stated that the RBI should eliminate intermediate nodes in monetary transactions with the central bank’s digital currency, or CBDC. Kumar went on to say that doing so will improve the efficiency of offline transactions.