The legal standing of cryptocurrencies in India is still in limbo and there is no sign that this will change anytime soon. However, the adoption of blockchain technology appears to be gaining traction in the nation. According to a recent report by an Indian news outlet, the state of Kerala plans to use the blockchain to bolster its financial sector and human resource management.

How Blockchain Technology will be used in Kerala

The state of Kerala in India will utilize the blockchain to strengthen its financial system by implementing various pilot schemes. To achieve this goal, the state is looking to hire professionals who are specialists in blockchain technology.

According to the secretary of IT in the state, the state wants to find sustainable use cases for the blockchain in the next five years. Besides hiring talent to help find use cases for the blockchain, Kerala is also open to buying ready-made solutions that utilize the blockchain, according to the minister.

The IT minister added that the “Kerala Blockchain Academy” established in the state in 2017, was going to produce a lot of talent in this sector. Kerala aims to train more than 20,000 people in blockchain technology in the next two years. The minister noted that about 2000 people had already moved on to the next step in the program and about 800 had graduated from the program.

The state also believes that the blockchain will play an important role in its financial sector. Kerala has a robust financial sector that includes banks, micro-finance institutions, and a huge amount of remittances coming into the state. To incorporate the blockchain into its financial sector, the state intends to provide incentives to firms in the blockchain sector so that they can invest in the state. Besides the financial sector, the state plans to introduce various pilot programs using blockchain technology such as food traceability, workforce management, and managing immunization programs in the state.

Other States Working on the Blockchain Use Cases 

Kerala is not the only state eyeing blockchain technology. A recent report in an Indian news outlet indicated that the state of Tamil Nadu was working on a state policy regarding the blockchain and AI. Drafters of the policy believe that the blockchain and AI are disrupting governance and policy. The state already has a blockchain platform that is intended to make delivery of services by the state more efficient.

The Future of the Blockchain

While many governments globally consider cryptocurrencies a potential disruptor to their monetary policy, many have embraced the underlying blockchain technology. They recognize that the technology offers numerous potential benefits over existing systems. For instance, it could make it easier to secure national identification systems. Additionally, it could be used to make it easier to trace the origin of agricultural produce and mineral deposits. One of the nations that have thus far embraced the blockchain in a big way is China. The nation already has a law in place to govern the sector although amendments could be made as the sector progresses.

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