The contemporary mantra of the modern day financial sector is speed and security. Every business or individual is habituated with speed and it is here that block chain technology plays a key role by connecting the supplier and consumer directly; eliminating the need for third party intervention. Banks and startups are increasingly resorting to this technology for cross border transactions. Block chain technology facilitates digital assets ownership and identity management in the digital domain without the risk of sharing or exposure of personal information. Hence terms like virtual currency, cryptocurrency or digital tokens are fast becoming part of popular parlance.

Amongst many, bitcoin has emerged as the most popular or atleast the most talked about crypto currency today. From being an obscure concept a few years back, bitcoin is nearly a household name today in many countries. Other emerging technologies like block chain and distributed ledger technology (dlt) offer secure authentication methodologies significantly resolving many digital identity issues.

Infact, block chain offers several feasible functionalities than those currently in vogue and possesses the potential to improve internal operations and external transactions of a company. It facilitates accelerated and secure movement of data. It has raised the level of accuracy in generation of transactions and tracking changes on a real time basis. Big corporations are experimenting with the technology to track the journey of a product from the assembly line to the retail store; block chain is also

being applied by logistics companies to track movement of cargo from one port to another.

The technology also offers multiple benefits for the retail industry and is largely being used to grade diamonds and consumable agro products like fruits and vegetables. In emerging economies like india with compliance standards becoming highly stringent and consumers becoming quality conscious, block chain technology can play a pivotal role in determining whether a product, from the manufacturing stage to end retail, has been handled in adherence with the prescribed social and environmental standards. This technology will also help eliminate the scourge of plagiarism from the creative industry.

From being an obscure concept a few years back, Bitcoin is nearly a household name today in many countries

Recently, the developments in china have cast a shadow over the bitcoin market; but that move seems to be in sync with other global central banks. China to is not disinclined towards the technology; but wants to have a virtual currency of its own. Lately, several central banks across the world have announced their wish to explore or experiment with dlt, spawning a new terminology“central bank crypto currency (cbcc)”. In my view, cbccs would be based on four key components like issuer, form, accessibility and transfer mechanism. If the central banks come up with cbccs, then they will have to allow the public to have central bank accounts.

India is also witnessing several developments on the virtual currency front. The indian government is inclined to introduce an indian version of virtual currency in the market. Executive director of reserve bank of india, sudarshansen, has reiterated that the government can launch its own virtual currency and that vc could be named lakshmi. indian virtual currency will be beneficial not just to the financial sector but also other sectors with block chain technology obliterating the need to maintain big back offices.

“lakshmi” will have a greater impact on the domestic market once introduced. But the plans of the government are not known yet and hence it would be premature to comment more on “lakshmi” and its impact on the domestic market. However, it is safe to assume that the environment in india is conducive for the roll-out of block chain technology in financial sector. In its report published in january 2017,the rbi’s research wing had heralded block chain technology as a landmark measure in bringing cost saving, efficiency and transparency in banking sector.