China’s arbitrary crackdown on cryptocurrency mining organisations has been creating an opportunity for other nations to adopt advanced technology at the earliest. China has shut down more than 90% of mining operations so far.
Meanwhile, the Canadian blockchain firms engaging in crypto mining operations have beefed up their operations. Blockchain companies like HIVE Blockchain and Hut 8 Mining are expected to double their mining operations by the end of this year, as per their exchange filings.
Canadian regulators drafted a blockchain firm-friendly regulation under its existing exchange securities commission. Consequently, crypto mining firms have started utilising subsidised clean energy sources.
Post-China’s ban on crypto mining devices like graphic processing units (GPUs) and application-specific integrated circuits (ASICs) are available at considerably reasonable prices. This development has helped crypto firms growing multiple folds in the first half of 2021 by acquiring more mining equipment.
Indian policymakers and the Indian financial regulatory body could take a cue from Canada by drafting a robust crypto policy. In addition to that, the existing equity market regulator Securities and Exchange Board of India (SEBI), could play a vital role in shaping up the crypto market by bringing in a separate digital asset investment provision.
India has ample sustainable resources to power crypto mining firms, such as solar energy, renewable thermal energy, and wind energy. Currently, India holds 136 gigawatts of renewable energy, representing 38% of total energy capacity. It makes India the third-largest clean energy producer in the world.
A timely regulation of the cryptocurrency market can bring India a majority fraction of the two-trillion-dollar industry. In addition, crypto start-ups that are sceptical about the upcoming policy could also kick start their businesses full-fledged once they get a feasible digital currency policy.
Adoption of Blockchain Technology
The Bank of Canada has also been exploring to create its central bank digital currency (CBDC). Bank for International Settlements (BIS) also recommended in early 2021 that central banks can create a synchronised CBDCs using blockchain as their fundamental technology.
T Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI), stated on July 22, 2021, that CBDC is the future of money.
The private blockchain industry could create millions of jobs in India that have yet to grab attention from policymakers. The adoption of blockchain and cryptocurrency among fintech firms, supply chain management, and the health care sector is inevitable. Indian education institutes have also commenced providing specialised courses in blockchain technology.
North America has almost three million software engineers, and a large fraction of them has been getting online jobs in the blockchain industry. On the other hand, India has over five million software engineers, and the blockchain industry could absorb the majority of them. Thus, policymakers could unleash this potential industry by entering into public-private partnerships.
Digital Assets to Help Achieving $5 Trillion Economy Target by 2024
The Indian financial regulators have accepted the importance of blockchain technology, but its utilities are immense, including land registry, health records, digital banking, farm insurance, and financial services. Thus, a separate committee including public and private stakeholders may frame a robust roadmap for the crypto industry.
An arbitrary approach to the cryptocurrency market regulation in India could lose a trillion-dollar business and millions of job opportunities. A public-private partnership in the blockchain ecosystem could be a win-win strategy for the government and crypto companies. In addition, a joint consultation could support strengthening the blockchain evolution in the country.
A viable cryptocurrency regulatory provision would help to build more advanced technology companies in India. Blockchain firms may adhere to SEBI rules or crypto-related guidelines once the Indian government frames a law to regulate the cryptocurrency market.
Digital asset investment platforms could bring their operations into compliance with the upcoming cryptocurrency regulation. The upcoming crypto policy would boost investors’ faith in digital tokens clearing myths surrounded the blockchain-powered currency.
In line with the Canadian equity market, Indian regulators could allow the listing of cryptocurrency companies and digital exchange-traded funds (ETFs), such as Bitcoin ETF and Ether ETF. So, mainstream Indian investors can also participate in this emerging segment. On top of that, digital assets could bolster the Indian government’s $5 trillion economy that is pegged for 2024. Thus, the finance ministry of Indian may prioritise this aspect while framing crypto regulations.
Using blockchain technology, public and private financial institutions could enhance economic inclusion throughout rural Indian territories. Hence, it is high time for policymakers to draft a robust crypto bill to accelerate development in the advanced technology sector.