Here’s How Blockchain Is Going To Bloom In India

All it took was one move by the Supreme Court.

What Happened?

Binance, which is a global decentralised cryptocurrency exchange, has set up a $50 million (₹370 crore) blockchain technology fund for India. Named as Blockchain for India, this fund is looking to invest upwards of $100,000 per startup and it commits to open up access to Binance’s global blockchain ecosystem to India’s entrepreneurial community. The fund will also invest in projects using Binance Coin, Binance USD and WRX coins up to $5 million.

Last week, Mumbai-based CoinDCX, which is a crypto-to-crypto exchange, announced that it had pledged $3.1 million towards an education campaign to promote cryptocurrency adoption in India.

Why Did This Happen?

Because of a move by Supreme Court

On April 6, 2018, RBI barred the central bank-regulated entities from “providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies”.

So, even if you made money during the bull market in cryptocurrencies, sad news for you, you cannot transfer to a bank account which is controlled by RBI. This move was criticised and opposed by many people.

But everything changed when the Supreme Court revoked the ban on March 4, 2020, saying that the ban was ‘disproportionate’.

Why Does This Matter?

This is just the beginning and we believe more investments in blockchain technology are on the way.

As per a Nasscom Blockchain Report 2019, startups are involved in more than 50% of the blockchain projects in India across various industries. Even though Indian blockchain startups have attracted only a small fraction (0.2%) of $5.6 billion worth of global venture capital investments, the report says that this trend will pick up.

Because of SC’s decision, now global companies can invest in the form of cryptocurrencies in Indian companies. This removes all the restrictions and makes investing beyond the border easier for companies. And we believe that more Indian blockchain startups will attract more domestic and global investments, helping them innovate more things and make new breakthroughs in the future.

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