India’s National Institute for Smart Government (NISG) has published its draft National Strategy on Blockchain. It makes ambitious suggestions, including both a central bank digital currency (CBDC) and a national blockchain.
A Central Bank Digital Rupee (CBDR) is proposed on a public permissioned blockchain. India has a track record of rolling out large scale projects with almost 1.2 billion people enrolled in its national digital identity project (Aadhaar). But it has just 582 million bank accounts compared to 1.21 billion mobile connections. So one can see the potential for a digital currency for financial inclusion alone.
However, a significant rationale for the CBDR provided in the document is the ability to monetize Internet of Things (IoT) data and other personal data. Hence people could be compensated for sharing health, telecoms and financial data. “Unlocking the value of the data in the hands of citizens in a secure manner could give a big boost to citizens’ disposable incomes,” the NISG said.
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