Add Crypto to IndiaStack says Use crypto protocols to draw in foreign investment and the digital rupee to ease local trade.
How can a loan be obtained by an Indian small business owner in the middle of nowhere?
A phone, a Reliance Jio connection, and access to IndiaStack—a magical collection of national APIs for payment, identity, and more—allow him to simply transact with anyone in India—are all increasingly likely to be present in today’s society. The Reserve Bank of India’s recently planned digital rupee will seamlessly integrate into this software platform, accelerating trade within India.
An essential component, however—comparably simple access to the economy outside of India—remains missing. After all, the owner of the small firm can now make international calls on his phone in addition to domestic ones. So why shouldn’t he have the same ease of receiving money from around the world as he does currently when trading with other Indians?
Add Crypto to IndiaStack protocols
That is made feasible by crypto. We’ll demonstrate how the addition of crypto capabilities to IndiaStack in addition to the virtual rupee benefits India in two different ways.
First, it benefits Indians locally by providing them with direct access to both domestic and foreign capital markets.
By creating an open source software stack that any nation can utilise for both internal and international transactions without dependent on either American or Chinese corporations, it also benefits India worldwide.
This envisions national software stacks with open-source cryptography. To put it another way, the nation would employ decentralized ledgers for international affairs and a permissioned ledger for domestic transactions by adding support for both a digital rupee and cryptocurrencies to IndiaStack.
That would provide India the best of both worlds: a local digital currency that is fully under the supervision of the Reserve Bank of India (RBI) and an international payment system that is not under the platform- or currency-level control of any other nation. Thus, the digital rupee’s platform would merge with that of digital wallets, digital gold, and decentralized finance. It’s blockchain and cryptocurrency, not either/or, in the jargon of the modern age.
In the opening section of this article, we examine IndiaStack and cryptocurrency, paying close attention to decentralized finance. Then, using a series of case studies, we demonstrate how a Crypto IndiaStack might benefit India domestically and show the simplest way to add both support for the digital rupee and the crypto protocol to IndiaStack.
The authors of IndiaStack, iSPIRT, have written a companion piece to this post that elaborates on perhaps the most significant of these case studies. It explains how integrating cryptocurrency support into IndiaStack could aid the RBI in bridging the urgent MSME funding gap in India by luring hundreds of billions of dollars in foreign cryptocurrency investment for Indian start-ups and small enterprises.