Over the past year, we saw how the effects of the global COVID-19 pandemic accelerated innovation in the technology sector, as people increasingly turned to digital services to cope with new realities under the lockdown. With a sizeable talent pool of IT developers, engineers and entrepreneurs, India’s tech sector holds great potential in bolstering the strength of our future economy. In particular, the digital assets sector has the potential to have profound benefits for our country and its people — by investing in the industry, India stands to benefit both socially and economically.
Should the Government decide that cryptocurrencies are a legitimate asset class, a population of 1.4 billion will gain access to a new form of asset class which has the potential to dramatically supercharge India’s economic development and engender financial inclusion in the country.
BOON FOR THE UNBANKED
With growing Internet and smartphone penetration across the nation, digital assets could grant India’s unbanked population access to essential money management services such as savings and lending, playing a significant role in helping to raise the standard of living and lift communities out of poverty. Digital assets can also drastically benefit our existing financial sector 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 revitalise traditional industries within India, such as 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 such emerging technologies, India stands to benefit from continued innovation, as well as job creation, increased investment in the Indian economy, and socio-economic growth — factors that will ultimately speed up India’s urbanisation journey.
NEED CLEAR LEGAL STANCE
With the demand for cryptocurrency on the rise and a growing number of digital natives, the development of clear Government definitions pertaining to cryptocurrencies and other industry-related activities would help to engender a clear legal stance on cryptocurrencies in India. In view of this, industry leaders in the sector are prepared to support the Government in its endeavours by maintaining open dialogue and to assist in developing innovative solutions and frameworks to bolster India’s future growth. Working together to come up with smart regulation will ensure a secure and equitable system in which cryptocurrency holdings are protected, without hindering the potential of the technology. This will be significant to supporting the cryptocurrency sector in bringing sustainable growth to the Indian technology sector, promoting economic development, and bringing its benefits to bear on the nation.
(The author is Head of Brand, Marketing and Communications at CoinDCX, the first Indian cryptocurrency exchange to achieve unicorn status. CoinDCX also educates people to understand crypto-enabled financial services, along with developing simple cryptocurrency products accessible to the common man.)
