Can Reliance JioCoin Give Shape To India's Cryptocurrency Regulations?
Before we set any unrealistic expectations let me tell you off the bat that this post is a speculative piece based on current information available in the public domain. Reliance is yet to confirm this officially but a top media house has reported recently that Reliance-India’s biggest conglomerate with assets valued over US$110 billion plans on launching it’s own blockchain and cryptocurrency.
This has sparked off a ton of articles on the subject with every other publication picking it off and writing their versions of it. Facebook groups were rife with discussions on the subject matter. The news essentially states that Reliance Jio-a top telecom company in India is building a 50-member team of young blockchain professionals to build their own blockchain technology and cryptocurrency.
Mukesh Ambani’s elder son Akash Ambani is expected to lead the JioCoin project. Ofcourse, Reliance has neither confirmed nor denied this reporting. Now, assuming this is real, and it very well be could be. Given the aggressive nature of Reliance’s expansion in the technology, mobile services domain in recent years, this could herald a change in government outlook and policy.
Here’s why: Reliance has a massive lobby and influence on the Indian politico. In the decades they’ve set up their businesses, various governments have come and gone. Reliance and its businesses have thrived and Mukesh Ambani the current heir to the family’s riches has gone on to become one of the richest people on earth.
I can’t say if all of this has resulted in good or bad but Reliance Industries holds a considerable grip on certain outcomes of government policies. Therefore, if anyone can force legislation to soften its stance on regulation of cryptocurrencies in India, then it would be the Reliance group.
Barring a few big hiccups, Reliance empire has grown to surpass any other in India. They have the wealth to back any project, the expertise as well as financial credibility. A blockchain project is no big deal for Reliance Jio if it infact its serious about it. As a cryptocurrency enthusiast I would love to see this happen as it would lead to a greater adoption of cryptocurrencies in India.
Reliance Jio is a household name. If JioCoin is launched it would see a high level of adoption in the country. If it causes a regulatory framework on cryptocurrencies to be put in place, it would also make it safer for all parties to transact.
Currently, there is ambiguity on purchase and sale as well as taxation on cryptocurrencies in India. The government continues to warn people of speculating in virtual currencies and has been arm-twisting exchanges and throttling their fund transfers. Hopefully, as the year progresses we will see a resolve.
I hope this JioCoin materializes as I would love to see how the market shapes up after that! This would certainly lead to an India after JioCoin and one that it left behind!
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India has a great share in cryptocurrencies holdings and if we can see an India coin to be launched, it will really give the Indians to get involved and become knowledgeable about it.
For arguments sake lets assume this is true. The Indian government allowing some large corporate entity to operate its own blockchain/crypto isnt really a huge victory for the industry. Depending upon how his coin is distributed it may well be entirely centralized/controlled by Jio, in which case its just a glorified coupon system. The impact/effectivness of something like this (if it is true) will depend entirely upon Jio creating a distribution/governance system transparent and distributed enough so as to allow development of the crypto to happen organically, so it may be more than just virtual Jio coupons.
Reliance Can do any thing. They have Jio Money since long and now they will start Jio coin. I guess it will be possible.
its like a great things made
Lets just hope it becomes true.
Reliance Industries has still not made an official statement to this. And yes if they come up with Jiocoin, we shall definitely see mass adoption of crypto in the country.
Well If this is true, they will shortly tax crypto and make it legal.
Technically it’s not illegal to trade or hold crypto right now. It’s just that the Government is adoption a wait and watch policy, and will soon come up with some sort of regulation.
The question however remains that whether the Government will accept it as currency or not.
Adopting it as a currency seems a bit far fetched right now, in the next 10 years or so, maybe, but then we don't really know what those currencies will be, integration of blockchain into our existing systems should happen in the next few years and could actually serve as a boon and I really don't think the govt would ban crypto simply cause of the revenue it brings.
Andhra Pradesh’s Government has already embraced blockchain technology for real estate in the state. I am not concerned about adoption, what concerns me more is that the decentralised concept is not something the Government likes, as it snatches away the power from the few who actually control the economy.
It’s a revolution and this transition of power will definitely face resistance. Hope for the best.
I heard they're making a blockchain university, read it in the news somewhere, telangana though probably.And not that I don't agree, which I do, the part where the govt. would't like decentralisation but as of now, it's just the taxes they'll get out of us trading would be a reason enough for them to not ban crypto.
and I second your opinion, revolution it is which will hopefully come soon to our governance system. much needed transparency for those who do understand what I am saying
I have one major concern and that is, due to all this ambiguity, India is lagging behind in innovation. When I see good projects, normally the idea, conceptualization is done in China, USA, UK and if you check their development teams, you will invariably find Indians. But Indians are not at the helm even in such projects. Many Indian Origin people are bringing new projects to Blockchain, but they are not in India. India will lag behind if this continues
I do hope it comes true.
This will be a blessing in disguise. The indian government which is known to have strong ties with the Reliance family won’t be able to ban cryptocurrency trading in india since their very own favorites are dealing in cryptocurrency now.
I don’t care honestly about the value of JioCoin or what technology they would work in, the problem they will likely solve but because they are entering the market, the government wouldn’t be able to ban cryptocurrency which would generate a lot of trust in the cryptocurrency Indian market which is still in its infancy stage.
I have used the Jio mobile phone network and I can say imo its the best network in India, i was able to get really good coverage. Also it massively changed the industry as they launched a far superior service at a very low cost. Based on this, I think their venture into cryptocurrency could be very successful
I do hope it comes true.
I too believe that. My husband, who was a non-believer in crypto world, just because of regulations, is now enthusiastic, since he feels if Reliance will come in this space, no Indian government will ever shut it down.
Jio completely changed the telecom industry in India. If the news about "Jiocoin" is true, it will surely make the government to place some clear regulations on the state of cryptocurrencies. Atleast I think it will.
Nice post
I hope the good things will come true.
If India regulated cryptocurrency trading then we will see something amazing happening in the digital world. India is a big country, the second biggest country in terms of population and very open to new technologies besides millions of Indians are active in digital currency trading, I hope I will see everything in the right way, and I wish I can see some big Indian based exchanges that could compete with south Korean ones. This is a wish but It might happen anytime soon.