siliconindia | | MAY 20239businesses are starting to offer services that cater to the global ecosystem. In this we'll explore the role that Web 3.0 and crypto services can play in India and how we must prepare for this.One of the key challenges facing the Indian crypto ecosystem is the need for timely regulations that will create a vibrant and transparent ecosystem. The government has already taken significant steps towards this, such as the TDS on sales and the recent anti-money laundering provisions under PMLA. However, some compliant Indian exchanges have experienced a significant drop in volumes since July 2022 as investors migrated to using non-compliant global exchanges for their trades. To address this, Indian businesses that operate with local offices should be encouraged to become the partner of choice for the government and the 'Platform of Trust' for investors.Blockchain Technology and its Role in Crypto and Web 3.0 ServicesBlockchain technology is the core technology behind crypto and Web 3.0 and is already implemented across industries. It is also touted as the base of the next big Metaverse trend. In this context, crypto and Web 3.0 services originating from Indian businesses can serve a multitude of use cases globally. This can attract foreign investments into India and create new jobs that will serve the economy and the youth well. However, this needs a consistent approach in terms of education and incentivizing businesses. We must prepare our youth for 5-10 years ahead.The eRupee & its PotentialAnother key benefit of crypto is the ability to enhance payments infrastructure in terms of time and cost. Cross-border payments via crypto have already given a boost to some countries. India's retail Central Bank Digital Currency CBDC (CBDC-R) started its pilot stage in December 2022, and the eRupee has several benefits, including faster and cheaper transactions, improved financial inclusion, and reduced reliance on cash. It is also expected to make it easier for the government to track transactions and crack down on money laundering.The eRupee can naturally become the de facto onramp for crypto and Web 3.0 transactions, allowing investors to transact with crypto and NFTs only via eRupee. This can also be extended to sectors such as online gaming. With the rise of blockchain technology, we expect the e-Rupee to be integrated into decentralized applications, making it an integral part of the Web 3.0 ecosystem in the future.While blockchain technology has the potential to revolutionize many industries, it is still a relatively new and complex technology that requires significant expertise to navigate. Consumer awareness and educational programs in various languages can help bridge this gap. Additionally, the inherent volatility in crypto asset prices needs proper risk planning by individuals and companies. While we anticipate the asset class to mature over time and decline in volatility, it is still years away.The adoption and success of the eRupee is dependent on its use cases and regulatory clarity that accompanies its usage. The move towards transparency will keep the ecosystem clean and trustable. The future remains bright for the crypto and Web 3.0 ecosystem in India with the right interventions. We must act soon to prepare for this exciting and rapidly evolving industry.Conclusion:- The emergence of Web 3.0 and the growth of the crypto industry offer immense opportunities for India's economy and its youth. However, to fully realize these benefits, there is a need for timely and transparent regulations, as well as education programs that can bridge the gap in expertise and risk planning. The eRupee, with its potential to become the de fact on ramp for crypto transactions, can play a pivotal role in shaping the future of the Indian crypto ecosystem. With the right interventions, India can position itself as a leader in this rapidly evolving industry and attract foreign investments while serving the needs of its citizens. It's time to act now and prepare for the exciting future ahead.
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