Indian IT companies enthused by digital currency opportunity

The government announcing the launch of Central Bank Digital Currency (CBDC) in 2022-23 and the possibility of the currency to run on blockchain technology have enthused top Indian IT companies. IT majors, including Tata Consultancy Services (TCS), Tech Mahindra and Larsen and Toubro Infotech (LTI), have been long working on developing a strong portfolio of emerging technology solutions such as blockchain.

This strategic announcement made, along with a few others during the Budget session on Tuesday by the government, will see likely bids from the IT majors.

“The government’s initiative to create a Digital Rupee is an exciting, forward-looking development. In our view, this will not be about just a single digital currency project but a series of initiatives that will help build a digital financial ecosystem, digital wallets and instant payments solutions. As a leading player in blockchain technology with our Quartz solutions, we are excited with this development,” R Vivekanand, Global Head, Quartz, TCS, told BusinessLine.

Sanjay Jalona, CEO & MD, LTI added: “The clarity around digital currency and blockchain technology in the Union Budget is a coherent message that the country is moving toward fostering greater transparency and trust in the industry. We expect this to be a fundamental change for entire digital transaction ecosystem in the country and further consolidate India’s hold on the global stage in exponential technologies such as Web3, cryptocurrency and Metaverse.”

“As an early adopter of blockchain technology and with our experience across global clients, LTI will continue to offer rich solutions around payments, supply chain, enterprise integration solutions, and more. We are keenly looking for more details and look forward to participating in India’s march to a digital future,” Jalona told BusinessLine.

Tech Mahindra, too, has been bullish on the possibility of these technology-backed developments.

Rajesh Dhuddu, V-P & Practice Leader, Blockchain & Cybersecurity, Tech Mahindra, told BusinessLine: “As a leading digital transformation provider and industry front runner, Tech Mahindra has significantly contributed to transformational strategies and solutions. We will continue to leverage cutting-edge technologies such as blockchain, 5G, AI and IoT to develop innovative solutions to address evolving customer requirements.”

A promising Budget for the IT Industry

The Budget has surely been a bag of surprises of the IT sector. By the looks of it, the government is working on integrating modern emerging technologies with several governance and development projects.

“We believe that the Union Budget 2022-23 is a futuristic Budget that outlines a comprehensive plan to help India achieve its digital dream. Key initiatives around blockchain, digital currency, cryptocurrency, and other new-age technologies are steps in the right direction to help India emerge as a global technology leader. Additionally, big announcements such as the setting up of digital universities and reviving the field of healthcare and education with the use of new-age technologies, will open gateways of opportunities for companies and emerging start-ups in these fields,” said Dhuddu.

Vivekanand added: “There are a number of announcements in the Budget which are promising from an IT and Digital perspective, for TCS, the industry and for the nation. Be it the Digital Rupee initiative, or the use of AI in sustainability projects. TCS is also a solution provider for key financial services projects at the Gift City. The thrust given to the IFSC is also a positive development.”

Speaking on these developments turning into better industry-wide revenue projection, Jalona said: “It is too early to comment, but we expect digitisation to be a key driver of India’s economic growth in the coming years. Inclusion of disruptive technologies such as blockchain opens up new opportunities for disruption across all sectors. This Budget will boost the pace of digitisation.”