Blockchain technology has removed dependence on a centralized authority: FiEx’s Tushar Gandotra
What started as a blip is now gradually becoming prominent. Blockchain has finally found its place in the strategy adopted by businesses across sectors. Today, many banks and business conglomerates are expected to experiment with it. In a conversation with FE Digital Currency, Tushar Gandotra, Founder and CEO, FiEx, a cryptocurrency-based startup, talks about how blockchain can help develop businesses and has the potential to shape the Indian financial sector. (Edited excerpts)
How do you think blockchain can be deployed in India?
I believe that Indian government supports blockchain and does not prohibit its development. Companies and government departments should try to implement blockchain technology in the long term. In the case of cryptocurrency-oriented blockchain, the industry may look to use the Telecom Regulatory Authority of India (TRAI) supported Distributed Ledger Technology (DLT) solution, which refers to the digital system for recording transactions of assets. The financial aspect of blockchain which includes bitcoin, ethereum, among others, should be regulated.
Should governments treat cryptocurrency as an asset class or currency?
The challenge that governments face when classifying cryptocurrencies is due to the existence of fiat currency, which is used by the general population. I feel it is still unclear how cryptocurrencies will work in the traditional system due to lack of knowledge. With fiat currencies, governments can track it, while digital currencies are supported by a decentralized system. For now, it should be treated as a virtual resource.
How do you think blockchain can shape India’s economy for the future?
With challenges still existing in the Indian tech sector, I believe they can be solved using blockchain. It has the potential to increase a country’s gross domestic product (GDP) by setting up businesses and generating income. All industries can use use cases to implement blockchain.
What role can blockchain play in helping developers of decentralized applications (dApps) and financial technology (fintech)?
I feel blockchain can build the Indian financial sector. Allegedly, incentivization through decentralization has helped to make money from aspiring developers. The decentralized system has removed the dependence on a centralized authority through facilities such as Decentralized Autonomous Organizations (DAO).
How do you think Indian institutional adoption of blockchain will pan out over the next couple of years?
Institutional use of blockchain can come with benefits, but for cryptocurrencies it can be a challenge, and that is where governments should play a role. The development of enterprise blockchain, which refers to a permissioned blockchain network that can be used to integrate and leverage for enterprise use, has the potential to generate revenue at scale. Technology-based companies should start using blockchain networks to build enterprise-oriented solutions.
