Local media reported that the Government of India is discussing the possibility of moving smart cards to travel to the subway and vouchers of loyalty programs for the blockchain, renaming them “crypto tokens.”
The article DNA India, referring to an anonymous representative of the Ministry of Finance of the country, reported on the possible replacement smart cards for travel in the metro and bonus miles of airlines “crypto tokens”:
“THE GOVERNMENT CONSIDERS THE POSSIBILITY OF REPLACING SMART-CARD FOR CRYPTO TOKENS. FIRST TECHNOLOGY IS TESTED APPLYING TO SMART TRAVEL IN METRO. In the commercial sector, they can be used as vouchers in the loyalty programs, for example, for bonus money… “
A representative of the Ministry of Finance said that users will pay paper bills for a token, which can be stored as code in any standard mobile phone, without the possibility of reverse conversion to fiat.
Thus, in the system under discussion there will be no cryptocurrency wallets, private keys, mining, transaction validation, and no decentralization. If we proceed from the message of the ministry’s representative, then the new system will not differ much from the usual vouchers of loyalty programs, except that they have been issued with the help of a blockchain.
However, there is a possibility that the journalists of the local newspaper misinterpreted the official’s statement, as has happened repeatedly with representatives of non-core media trying to join the blockchain.
In the meantime, Indian cryptocurrency market continue to struggle for the right to exist, but is rapidly disappearing into the shadows – to bypass strict regulations, in effect, driving the crypto instruments from the country. In early July, the highest court of India refused to provide even a temporary respite and, even more so, lift the ban on servicing cryptocurrency exchanges by financial institutions of the country, as a result of which Indian exchanges were forced to restrict trading by cryptocurrency pairs. Recently, Huobi announced the imminent opening of trading in pairs with Indian rupees, but so far Indian traders have bypassed the law with the help of “Dabba trading”.