Blockchain — a protocol for exchanging value over the internet without an intermediary — has the potential to transform multiple industries and make processes more transparent, secure and efficient. Financial players are the first movers to capitalise on this technology infrastructure. Several industries and governments are waking up to the disruptive potential of this technology.
As India moves towards a less-cash economy after the remonetising of high-value currency notes in November 2016, digital payments are estimated to grow 10 times: from $50 billion last year to $500 billion by 2020. Official figures show that prepaid payment instruments rregistered a spectacular volume growth of over 162% in 2016-17.
The mobile wallet market is forecast to reach $4.4 billion by 2022 with a compound annual growth rate of more than 148%. As India’s migration to digital platforms gathers pace, cutting-edge solutions will enable consumers to do much beyond payments for daily-use items like groceries, milk, fuel and medical supplies, and access top-end services like loans, investments, savings and crossborder remittances.
GoI has proposed a two-percentage-point discount in GST for consumers who make digital payments. This is a good move that will automate workflows, encourage good accounting practices, ensure tax compliance and spark a new approach towards digital inclusion.
With these trends, India should transform into a knowledge-driven economy through a digitally empowered society. Much sooner than the world expects.