The recent announcement of the Jio Platform’s partnership with Polygon Labs – a leading web3 player providing robust and efficient blockchain solutions, has got the attention of Indian crypto enthusiasts.
This partnership marks the entry of Jio into the crypto world, by the introduction of JioCoins. Unlike traditional cryptocurrencies, JioCoins as of now have not been listed in any of the crypto exchanges since it is currently in the early stages, but there is an expectation in the future that there is a possibility of listing, expanding their functions, and usability.
What are JioCoins?
JioCoins are blockchain-based reward tokens operating on the Polygon network, that the users can earn by engaging in the JioSphere – a proprietary web browser of Jio. Users can browse through the JioSphere and accumulate these tokens which will be deposited in the user wallet based on the engagement.
With reference to the characteristics of the JioCoin, which is a blockchain-based reward token can be compared with a utility token. A utility token is intended to provide access to goods or services. One such type of utility token is a reward token, which is issued by a platform to incentivize and distribute as rewards for contributing to the growth of the network.
Since JioCoins are at their early stage of development, there is speculation that these coins might be used in Jio’s ecosystem further increasing their function across these ecosystems.
What does this mean for the Crypto Industry in India?
Reliance being India’s biggest telecommunication giant entering into the crypto industry provides hope for the crypto industry that there would be more development with respect to adopting blockchain technology and embracing cryptocurrencies.
Since the crypto industry is facing significant difficulties, especially with reference to the WazirX crypto exchange hack there has been a negative ideology towards the crypto industry, but the introduction of JioCoins would further expand the blockchain and cryptocurrency industry in the near future. The next prospective element to look into is the regulatory perspectives of this ecosystem.
Path to Regulatory Clarity
As India is marching toward the “Digital India Era” which could be evident with the introduction of the Digital Personal Data Protection Act, 2023 there is a possibility that the strategic partnership of Jio and the introduction of JioCoin could pave the way for a specific regulation with reference to the Virtual Digital Assets.
What does the future hold?
On the basis of various events like the U.S. President Trump embracing cryptocurrencies, could impact this industry at the international level, and by harnessing blockchain technology and partnering with industry pioneers like Polygon Labs, Reliance Jio is expanding its service portfolio while driving the broader acceptance of cryptocurrencies in India indicates that this industry is poised to evolve further depicting a positive future in this space.
By Shahana Prakasam
Legal Advisor
Digital South Trust
