Government officials in Karnataka State, India have scheduled a seminar to tackle issues over the use of Blockchain technology and cryptocurrencies like Bitcoin in the state.
The move may eventually result in the enactment of new laws for the digital currency market.
In his tweet in late July 2017, Priyank Kharge said that the event will focus on Blockchain for governance and Bitcoin. Kharge leads the state’s information technology and biotechnology programs.
Govt will soon host a seminar to understand blockchains for governance & bitcoins. If necessary evolve a policy. https://t.co/R4JoglCyyg
— Priyank Kharge (@PriyankKharge) July 23, 2017
To prevent rising cases of fraud
The government of Karnataka is already advancing efforts to establish a new legal framework for digital currencies or virtual currencies. The move is due to such factors as the increasing market size of cryptocurrencies, the rising cases of fraud and the expanding investor base of digital currencies.
One of the possible solutions to regulate the cryptocurrency market is the introduction of a goods and services tax to transactions using digital currencies. There are, however, several issues that were raised like which agency will be responsible for supervising the market. Among the possible regulators are the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
More states follow
Aside from Karnataka, there are other Indian states which are planning or moving to adopt or integrate the Blockchain technology and digital currencies in the public sector.
Both the states of Andhra Pradesh and Telangana are advancing projects aimed at integrating Blockchain technology in their land registry systems. The projects are part of the digital reworking of the land registration process in both states.
Moreover, the Telangana government is also planning to use Blockchain to improve the operations of its Revenue Department. The project will be supported by India’s Center for Development of Advanced Computing (C-DAC).