BlockChain Velocity in Bangladesh: The Conflict Between Regulation and Innovation

While conversing with the chapati vendor of a small e-commerce platform in Cumilla, he said, 'I have invested only 20,000 Taka, but now I think the future of this token is like a cricket match battle.' This image reflects the volatility of Bangladesh's blockchain industry in a certain way. An analysis of the current state of the blockchain industry in Bangladesh reveals that on one hand, it is a center of vibrant technological research and on the other, it faces a dilemma of government regulation. The Central Bank of Bangladesh (Bank of Bangladesh) has legally banned cryptocurrencies, which incentivizes a limited but participatory force in this sector. The conflict between the decentralized nature of blockchain and Bangladesh's centralized financial policies regularly arises. The fruit of this conflict is that where technology spreads rapidly like a neural network, laws and policies are lagging behind. The main forces of this sector—startups and unorganized entrepreneurs—their core concern is transparency. The cash-based transactions in Bangladesh's economy, which are irregular and hidden, are presented by blockchain technology as a promising alternative. Using smart contracts and decentralized ledgers, initiatives believe that it will create an efficient, safe, and open process in transactions. Based on this belief, Bangladesh's blockchain vision, comparatively with its neighbor India's inexpensive banking policies, speaks of national self-reliance and financial inclusion. A crucial question for the next phase of research is whether the government will accept this new power in the same way that technology has been globally adopted? Nepal's experience, where there is a ban on providing banking services for cryptocurrencies but blockchain research is encouraged, serves as an important advisor for Bangladesh. Nepal's policies show that a country can control legal barriers and the technology sector separately. This ability to separate is extremely important for Bangladesh because it provides an opportunity to create an entrepreneurial policy in line with current binding rules. Another crucial discussion is human resources. What are stylish engineers doing in Bangladesh? On one hand, they are working with international companies, and on the other hand, they are trying to establish themselves in the domestic sector. This division is a problem because the strength of each side depends on the other. A balanced policy is necessary for Bangladesh's technology sector, which on one hand will attract international investment and on the other hand will provide a stable platform to domestic entrepreneurs.