Blockchain Is Different From Cryptocurrency And The Technology Has Tremendous Potential In Many Areas: Mukesh Ambani

Mukesh Ambani, chairman and managing director of Reliance Industries, has shared his views on blockchain technology. The business tycoon stated that he believes in the Blockchain, which according to him, is very important for a “trust-based, equitable society”.

He made these comments during an interview at the Infinity Forum, hosted by International Financial Services Centres Authority (IFSCA), virtually from the Gujarat International Finance Tec-City (GIFT City).

“Using Blockchain, we can deliver unprecedented security, trust, automation and efficiency to almost any type of transaction. It can be used to modernise our supply chains that form the lifeblood of our economies,” Ambani said while adding that the technology offered tremendous potential for financial innovation at the next level.

According to him, Non-Fungible Tokens (NFTs) are a brand-new idea introduced by Blockchain. Ambani believes that real-time transactions and settlements, genuine digital documentation of all transactions—digitisation of ownership of land, property, gold, and other assets—are all possible with this technology.

“In the e-commerce space, we will need innovative solutions to take care of working capital needs of lakhs of merchants, while managing their credit scores real-time,” he added.

Ambani believes that Blockchain might be utilised to create an innovative data privacy model in which customers' data is owned and controlled by them through technology.

Additionally, the billionaire also highlighted one fact that “this [Blockchain technology] is different from cryptocurrency”—for example, Bitcoin is a cryptocurrency, while Blockchain is a distributed database that enables the existence of virtual currencies.

According to Invest India, the worldwide Blockchain industry was valued at $3 billion in 2020 and is predicted to increase to $39.7 billion by 2025, with a CAGR of 67.3 per cent over that time period.

It also noted that in India—where the government is expected to introduce a bill on cryptocurrency in Parliament during the ongoing Winter Session to regulate such virtual currencies—many businesses are currently attempting to understand the technology by incorporating it into their regular operations, and a slew of new start-ups are joining the fray.

The banking, financial services and insurance industries have shown the most interest in blockchain technologies as per Invest India, while land title registration, vehicle lifecycle management, agricultural insurance and electronic health record management are a few of the applications that the government has been actively adopting this technology for.

However, Ambani endorsed the proposed measures on data privacy and cryptocurrency, claiming that India is enacting the most forward-thinking rules and regulations. He believes that countries have the right to construct and preserve key digital infrastructure.

He claimed that data is the "new oil," and that every citizen's right to privacy must be protected. During the event, Ambani noted: “We are on the verge of introducing data privacy bill, and the cryptocurrency bill. I think we are on the right track.”