India Creates Consortium to Help Small Businesses with Crypto

Indian Bank Blockchain Consortium

Is India ahead of the United States when it comes to leveraging cryptocurrency processes for small business assistance?

Some of the newest reports today in the cryptocurrency world talk about a new Indian Bank Blockchain Consortium that’s gearing up to help small businesses succeed.

According to reports at Cointelegraph, 11 Indian banks are on board to move toward more vibrant lending practices where borrowers receive amounts up $140,000 US. (Be sure to take a look at the interesting graphic accompanying the piece – and the mysterious constellation on the protagonist’s sitar!)

Small businesses in the U.S. looking at this news might notice that there is currently not the same kind of initiative in place here in America. But then again, in some ways, India’s landscape does look similar to what we have here in the U.S.: reports on the context of India’s cryptocurrency adoption processes note that regulators are moving “with caution,” not unlike the U.S. Securities and Exchange Commission, which took months to think about a Bitcoin ETF proposal before that proposal was temporarily withdrawn.

“In absence of a globally acceptable solution and the need to devise technically feasible solution, the department is pursuing the matter with due caution,” Pon Radhakrishnan, the Minister of State in the Ministry of Finance and Ministry of Shipping, said, according to reporting by William Suberg Dec. 31. “It is difficult to state a specific timeline to come up with clear recommendations.”

India has its crypto detractors, even as its banks get ready to use blockchain as a tool for small business lending

 The Reserve Bank of India (RBI) is one of the usual suspects when it comes to recoiling from digital cryptocurrencies, as in reporting last year when the RBI was restricting blockchain-related activities.

“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs,” RBI reps were quoted as saying in April of 2018. “Regulated entities which already provide such services shall exit the relationship within a specified time.”

Whether India is indeed going ahead or moving back from Bitcoin and other coins can depend on what markets do this year. As you make your plays, look for news from developing markets to factor into your portofolio decisions.