India might currently frown on crypto, but many of its top firms are experimenting with blockchain technology for their internal use.
While India is considering a complete ban on any cryptocurrency use, many major Indian firms have been experimenting with using blockchain technology to manage their internal operations.
Just last year, India’s central bank, the Reserve Bank of India, clamped down on banks by banning them from having any business dealings in cryptocurrency or with crypto exchanges.
But for companies such as Hindustan Unilever, Reliance Industries, HDFC Bank, and ABG Shipyard, blockchain is now being experimented with for managing areas like treasury management, record keeping, payments, and other trade and finance functions.
Fossbytes noted in its report that “cryptocurrency would only be used by the companies and banks internally. It will mainly be effective as a working capital management tool, where rather than actually transferring money, cryptocurrency will be transferred and accounts shall be reconciled at a later date.”
It also noted that such use of crypto could be expanded over time should these trial experiments prove fruitful.
Blockchain may have its efficiency in aiding the maintenance of records and transactions. However, depending on the scale and scope of its use, there could likely be legal implications that firms will have to well consider – especially when it comes to taxes and accounting.