Over the past year, we have seen how the effects of the global COVID-19 pandemic have accelerated innovation in the tech sector, as people increasingly look to digital services to make faced with the new realities of confinement. With a large pool of IT developers, engineers and entrepreneurs, India’s tech sector has great potential to strengthen the strength of our future economy. Specifically, the digital asset sector has the potential to have profound benefits for our country and its people – by investing in industry, India should benefit both socially and economically.
If the government decides that cryptocurrencies are a legitimate asset class, a population of 1.4 billion will have access to a new form of asset class that has the potential to dramatically boost India’s economic development and generate financial inclusion in the country.
DEAL FOR UNBANKED
With the increasing penetration of the Internet and smartphones across the country, digital assets could enable the unbanked Indian population to access essential money management services such as savings and credit, playing an important role in helping to raise living standards and lift communities out of poverty. Digital assets can also greatly benefit our existing financial industry by facilitating more convenient, secure and transparent payments than current systems, leading to greater traceability and convenience when conducting financial exchanges.
Innovation and adoption of blockchain technology could potentially revitalize traditional industries in India, like our agricultural sector, through the use of microfinance portals, smart contract-based supply chain models and projects that connect farmers to metropolitan markets. Through the adoption of these emerging technologies, India is expected to benefit from continuous innovation, as well as job creation, increased investment in the Indian economy and socio-economic growth – factors that will ultimately accelerate India’s urbanization journey.
NEED A CLEAR LEGAL POSITION
With the growing demand for cryptocurrency and a growing number of digital natives, the development of clear government definitions regarding cryptocurrencies and other industry related activities would help engender a clear legal stance on cryptocurrencies in India. In view of this, industry leaders in the sector stand ready to support the government in its efforts by maintaining an open dialogue and helping to develop innovative solutions and frameworks to support India’s future growth. Working together to craft smart regulation will ensure a secure and fair system in which cryptocurrency holdings are protected, without hampering the potential of the technology. It will be important for supporting the cryptocurrency industry to bring sustainable growth to the Indian tech sector, promote economic development and bring its benefits to the nation.
(The author is responsible for branding, marketing and communications at CoinDCX, the first Indian cryptocurrency exchange to achieve unicorn status. CoinDCX also educates people to understand crypto-asset financial services, as well as to develop simple cryptocurrency products accessible to the common man.)
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Posted on: Monday October 25, 2021 12:01 am IST