Blockchain technology in India has experienced a dynamic evolution, marked by rapid adoption, regulatory scrutiny, and growing institutional interest. While cryptocurrency remains a contentious topic among policymakers, the underlying blockchain infrastructure is gaining strong traction across government, finance, and enterprise sectors. This article dives deep into India’s blockchain journey—highlighting pivotal milestones, key players, and transformative use cases that are shaping the country’s digital future.
Government Stance: Caution Toward Crypto, Embrace of Blockchain
India’s approach to digital assets reflects a clear dichotomy: resistance toward cryptocurrencies as legal tender, but strong support for blockchain innovation. In the 2018 budget speech, India’s Finance Minister explicitly stated that “the Government does not consider cryptocurrencies as legal tender or coin,” while affirming its commitment to curbing illegal activities linked to digital assets.
Despite early warnings from the Reserve Bank of India (RBI) in 2017—discouraging financial institutions from dealing with crypto exchanges—blockchain technology has been welcomed with open arms. The government established an inter-ministerial committee to study global regulations, assess risks like money laundering, and recommend frameworks for consumer protection and compliance.
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Crucially, the committee emphasized developing standards for KYC/AML (Know Your Customer / Anti-Money Laundering), STR (Suspicious Transaction Reporting), and secure asset trading protocols—laying the groundwork for responsible innovation.
Prime Minister Modi Champions Disruptive Tech
At the World Congress on Information Technology (WCIT), Prime Minister Narendra Modi underscored the transformative potential of blockchain and IoT (Internet of Things). He called for rapid integration of these technologies into everyday life and governance, signaling top-level endorsement for digital transformation.
This vision has catalyzed public-sector initiatives, including the launch of IndiaChain, a government-backed blockchain project led by NITI Aayog—the country’s premier policy think tank.
IndiaChain: The Nation's First Official Blockchain Initiative
Announced in early 2018, IndiaChain aims to issue tamper-proof digital academic certificates starting with graduating students in 2019. Built on a secure distributed ledger, this system will pilot at prestigious institutions like IIT Bombay and Delhi University.
By eliminating document fraud and streamlining verification, IndiaChain exemplifies how blockchain can enhance transparency and trust in public services. It also sets a precedent for future applications in land records, healthcare data, and identity management.
Andhra Pradesh Leads in Citizen Data Security
In September 2017, the state of Andhra Pradesh partnered with Swiss cybersecurity firm WISeKey to deploy blockchain for securing citizen data. With vast databases vulnerable to cyber threats, this collaboration leverages blockchain’s immutability to protect government records.
The initiative spans multiple departments and could expand into smart city projects, setting a benchmark for other Indian states aiming to strengthen digital governance.
Banking Sector: Pioneering Enterprise Blockchain Adoption
Indian banks have emerged as early adopters of blockchain solutions, focusing on efficiency, security, and cross-border transactions.
RBI’s Blockchain Proof-of-Concept
The RBI’s research arm, IDRBT, launched a blockchain proof-of-concept (PoC) using smart contracts—referencing Ethereum in its whitepaper. Participants included major banks like SBI, HDFC, ICICI, Citibank, Deutsche Bank, and blockchain firm MonetaGO. The project explored real-time settlement, reduced fraud, and improved auditability.
Axis Bank & Ripple: Revolutionizing Cross-Border Payments
Axis Bank integrated Ripple’s blockchain solution into its core banking system for international remittances. This move followed ICICI Bank’s successful 2016 pilot using blockchain for overseas transfers—a first among Indian private banks.
ICICI later established a dedicated digital division to explore blockchain applications across trade finance and customer services.
Yes Bank: Blockchain for Supply Chain Financing
Yes Bank implemented a multi-node blockchain solution using Hyperledger Fabric—a permissioned ledger platform developed with IBM. The system digitizes vendor financing processes, reducing paperwork and processing time through smart contracts.
This deployment highlights how blockchain enhances liquidity and trust between suppliers and financial institutions.
BankChain: India’s First National Banking Consortium
Launched in February 2017 by State Bank of India (SBI), BankChain is India’s first inter-bank blockchain alliance. Supported by Primechain Technologies, it includes over ten major banks such as Kotak Mahindra, IDBI, and DCG Bank.
One of its flagship projects is ClearChain, a KYC-sharing platform that allows banks to securely exchange customer data—including suspicious transaction reports—reducing duplication and improving compliance efficiency.
Industry Associations Driving Standardization
Two key organizations are shaping India’s blockchain ecosystem:
Digital Asset & Blockchain Foundation of India (DABFI)
Formed in early 2017 by leading exchanges like Zebpay, Unocoin, and Coinsecure, DABFI focuses on self-regulation. Its mission includes creating standard guidelines for trading, KYC/AML compliance, and educating regulators about the benefits and risks of cryptocurrencies.
Blockchain Foundation of India (BFI)
Established in December 2017 by Coinsecure and Velix.ID, BFI promotes broader blockchain adoption across industries. Members include PwC, Nokia, GSK, and the National Informatics Centre. Unlike DABFI, BFI emphasizes enterprise use cases and collaboration with banks and government bodies.
Corporate Giants Embrace Blockchain Innovation
Major Indian conglomerates are investing heavily in blockchain R&D.
Tata Group: Early Backer of Crypto Startups
Ratan Tata, chairman emeritus of Tata Sons, made headlines in 2015 by investing in Abra, a U.S.-based P2P cryptocurrency transfer platform. This marked one of the first high-profile endorsements of blockchain from an Indian industrialist.
Mahindra Group: Transforming Supply Chain Finance
In November 2016, Mahindra partnered with IBM to develop blockchain solutions for supply chain finance. Their PoC demonstrated how distributed ledgers could streamline lending to SMEs—boosting transparency and reducing delays.
Reliance Industries: Building JioCoin?
Reliance JioInfocomm—subsidiary of India’s largest conglomerate—is reportedly developing JioCoin, a proprietary cryptocurrency. A team of 50 blockchain experts is working on smart contracts and logistics applications within Jio’s vast ecosystem, which includes JioMoney, JioTV, and JioPhone.
If launched, JioCoin could power loyalty rewards and microtransactions across millions of users.
Infosys & EdgeVerve: Enterprise Blockchain Frameworks
Infosys subsidiary EdgeVerve Systems released the EdgeVerve Blockchain Framework in April 2016. Designed for financial institutions, it enables rapid development of blockchain-based solutions for payments, trade finance, and asset tracking.
Future Group: Retail Innovation Lab
Retail giant Future Group launched the Future C&D Lab in Bengaluru to explore blockchain in consumer engagement. Focus areas include payment security, personalized marketing, supply chain automation, and AI-driven analytics.
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Startups & Incubators Fueling Innovation
India’s startup ecosystem is thriving with blockchain-focused ventures.
Satoshi Studio: South Asia’s First Blockchain Incubator
Launched in December 2016 by mining pool GBMiners, Satoshi Studio in New Delhi offers mentorship, infrastructure, and $50,000 funding to early-stage startups. It aims to position India as a regional hub for blockchain innovation.
Notable Indian Blockchain Companies
- Elemential Labs: Provides modular blockchain tools used by NSE for KYC and royalty management.
- Sofocle: Builds Hyperledger-based solutions for supply chain finance and trade settlement.
- Cateina: Digitized vendor financing for YES Bank using smart contracts.
- KrypC Technologies: Offers no-code blockchain platforms via KrypCore MVP.
- Accubits & Somish Solutions: Deliver cross-industry DApps on Ethereum and Hyperledger.
- Signzy: Combines AI and blockchain for digital identity verification in banking.
- StaTwig: Tracks temperature-sensitive goods in pharma and food supply chains.
- RecordsKeeper: Decentralized document storage alternative to Dropbox or Google Drive.
- GetXS: Enables passwordless login via blockchain-based digital IDs.
Emerging Use Cases Across Sectors
Energy: CLEAN & Energo Labs
In December 2017, Energo Labs partnered with Clean Energy Access Network (CLEAN) to bring decentralized energy solutions to off-grid regions using Qtum-based DApps. The goal? Transparent microgrids powering rural communities.
Content & Copyright: CNN – India’s First China-Backed Blockchain Project
The Content Neutrality Network (CNN)—developed by a Chinese team—launched in India to disrupt content monetization. Partnering with NewsDog (40M+ users), CNN uses smart contracts for fair revenue sharing, creator incentives, and community governance.
Frequently Asked Questions (FAQs)
Q: Is cryptocurrency legal in India?
A: Cryptocurrencies are not banned but are not recognized as legal tender. The Indian government regulates them under anti-money laundering laws and taxation policies.
Q: Can I use Bitcoin to make payments in India?
A: Yes—platforms like Zebpay allow users to buy gift cards for Amazon, Flipkart, BookMyShow, and more using Bitcoin. However, widespread merchant adoption remains limited.
Q: What is IndiaChain?
A: IndiaChain is a government-led blockchain initiative by NITI Aayog to issue secure digital academic certificates and combat credential fraud.
Q: Are Indian banks using blockchain?
A: Yes—SBI, ICICI, Axis Bank, and Yes Bank are actively piloting or deploying blockchain for remittances, KYC sharing, and supply chain financing.
Q: How is blockchain being used in education?
A: Through IndiaChain, universities will issue tamper-proof digital degrees stored on a blockchain ledger—enabling instant verification by employers or institutions abroad.
Q: Which Indian companies are leading in blockchain development?
A: Infosys (via EdgeVerve), Tata Group, Mahindra, Reliance Jio, and startups like Primechain, Signzy, and StaTwig are at the forefront of enterprise blockchain innovation.
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