Blockchain Will Spur Growth Among SMEs Says Ex-Governor of India’s Central Bank
November 7th, 2019
Ripple’s much-awaited conference, Swell has kick-started enthralling famous personalities from the blockchain, crypto and finance arena. Dr. Raghuram Rajan, 23rd Governor of the Reserve Bank of India and Chief Economist of the International Monetary Fund lauded Blockchain technology and said that it will be beneficial in reducing transaction costs and will also accelerate the growth of SME’s.
Productivity of Economies Will Increase Manifold With Blockchain
When questioned about India’s economic growth, Rajan said that the true productivity of economies will be manifold by the adoption of new technologies. He further said that the right partnership with Telecoms can help create new incentives for collaboration and also help in reducing costs.
He also expressed his opinions on the case of cryptocurrencies and said that crypto use cases should be allowed to flourish while small. Furthermore, with the growth of crypto- assets regulators should take steps to assess and adapt to the same- not kill the innovation.
A Look At India’s Blockchain Pursuits
India has been earnestly experimenting with blockchain to promote innovation and cut down costs. Recently, blockchain startup PARAM is planning to save businesses the cost of invoice processing by bringing the process of invoicing to the blockchain. Currently, up to 90% of the 550 Bn invoices generated every year are processed manually. The cost incurred in the processing of the invoices varies from $11 to 15. The latter will not only reduce costs to half the price but will also automate the process.
Furthermore, TRAI yesterday confirmed that it will be using Distributed Ledger Technology (DLT) platform to eliminate the SMS spam and fraud. Under the new system, the subscriber will be able to revoke consent whenever desired through the TRAI app or other mechanisms that will be provided under the regulation. Furthermore, TRAI’s new venture will need to get SMS templates approved by the telemarketers. Post the launch of the platform, all enterprises will be required to register and get unique sender IDS for the new platform.