Insiders of the crypto industry in India have urged payment providers such as Google Pay and Paytm to develop policies that will aid them in providing secure Web3 services.
Indian Web3 specialists and insiders think that blockchains and cryptocurrencies have arrived because they are necessary to refine the existing financial system and improve the worldwide fintech. Crypto experts shared the same opinion during World Fintech Day, observed every year on August 1. The day commemorates the anniversary of the death of Cosimo de’ Medici—a 15th-century Italian banker and politician who founded the Medici Bank and influenced the current banking system.
Experts agree that the speed they adopt is vital for countries looking to be leaders in this sector.
“The ever-changing environment that is digital resources requires flexibility. Digital assets have become incredibly important, bridging gaps between Web2 and Web3,” Dhruvil Shah, SVP – Technology, Liminal, explained to Gadgets 360. Shah also claimed that digital assets provide transparency in financial ecosystems and aid financial inclusion. “As technology advances, digital assets have the potential to create a decentralized and sustainable global economy,” he added.
The global blockchain market for financial and banking services has been reported to have increased by $1.89 billion (roughly the equivalent of Rs. 15552 crores) in 2022 to $3.07 billion (roughly 25262 crores). 25262 crore) in 2023, based on a compound annual growth rate (CAGR) of 62.1 per cent.
Due to the absence of laws that govern the emerging fintech sector, that is, Web3 and cryptocurrency, nations like India adopt a sceptical approach to integrating them with their existing financial systems.
Industry insiders encourage online payment companies such as Google Pay and Paytm to develop policies allowing them to integrate Web3 services for their customers and users.
“Traditional wallets” deal with regulated fiat currencies, whereas digital assets do not have comprehensive rules. To overcome this, cooperation within the regulation framework is vital. One solution that could be considered is the creation of a hybrid system which allows seamless money transfers across traditional and electronic wallets, allowing them to expand their offerings to a larger audience,” the Liminal official also said.
Liminal is a digital wallet company located in India. Liminal has hosted the rounds for six funding from February 2023 to date and has collected over $31 million (roughly Rs. 253 crores) in capital from more than twelve investors. The company is one of about 350 Web3 startups that have sprouted out of India recently.
Despite India’s rigid strategy toward taking sm
all steps into the digital asset and crypto sector, India’s technological talent has managed to attract the attention of venture capitalists and companies looking for the blockchain workforce.
In April 2022, Web3 financing in India reached $1.3 billion (roughly Rs. 11,525 crore). In 2000, a NASSCOM study stated that about 11 per cent of all Web3 talent is based in India, making India the third-largest home of the Web3 workforce. The report predicted that by 2024, India’s population of 75,000 blockchain specialists would grow by 120 per cent.
The Web3 Roadmap: Predictions From Insiders from the Industry
“Global consensus on regulating digital assets appears to be biased in favour of regulation versus any ban completely. No major economy besides China is known to have ever banned digital assets. At the same time, some international blocs or organizations like Europe, FATF and World Economic Forum (WEF), IMF and countries such as India, Japan, Singapore, UAE and Hong Kong have either completed or released an outline of a framework for regulation. I am convinced that by 2025, most countries will have some kind of regulation for digital assets in the works,” he said.
Many nations worldwide are developing their own Central Bank Digital Currencies (CBDCs) without cryptocurrency. Based on blockchains, CBDCs represent the digital representation of fiat currencies, which can eliminate the need for physical paper notes and record the details of transactions in an unchangeable format in the Blockchain.
Nischal Shetty, the CEO of the WazirX cryptocurrency exchange, has told Gadgets 360 that CBDC trials have disrupted the fintech industry, specifically for the existing UPI participants in India.
“With transactions being settled in real-time through the central bank’s electronic currency infrastructure, there is less need to use intermediaries such payment gateways will decrease, which could result in reductions and more efficient procedures for users of UPI. Thanks to their ability to process large volumes of data, scalable blockchains allow for immediate confirmation of transactions, making them perfect for supporting the rapid and seamless payment of CBDC transactions.” Shetty said.
Approximately $100 million (roughly approximately. 826 crores) in CBDCs are currently in circulation across the world, where governments are conducting trials. In 2030, the number will likely be $213 billion (roughly the equivalent of Rs. 17,60,880 crore) with a projected growth of 260,000 per cent, according to a recent Juniper Research study.