Web 3.0 or Web3 could add $1.1 trillion to India’s economic growth over the next 11 years, but only with the right policies and regulatory framework, said new research from the US India Strategic Partnership Forum (USISPF) and digital currency exchange CrossTower.
Web3 is supposed to be a more decentralised web that challenges the dominance of the tech giants by concentrating the power and data in the hands of the users, instead of the big tech corporations. This means that data is distributed across networks and no single entity owns the information.
Fuelled by Web3, Non Fungible tokens (NFTs) are also projected to emerge into a market of $1 trillion or more, the report noted.
NFTs enable users to own rare digital artifacts through the blockchain network that backs cryptocurrencies. All forms of art, tweets, music, GIFs, and more such digital assets can be owned through NFTs.
According to the report, the digital asset economy’s value to India’s GDP will grow at a 43.1 per cent compounded annual growth rate (CAGR) from $5.1 billion in 2021 to $261.8 billion over an 11-year period, resulting in a $1.1 trillion contribution to the country’s economy, adding that digital asset market capitalization was about $1.5 billion in 2013 and the market capitalisation is at nearly $3.0 trillion today.
Part of the reason why CrossTower believes there will be a significant uptick in crypto within India is that, globally, the adoption of crypto has accelerated past that of the Internet in its short lifespan.
“It took the internet approximately 7.5 years to go from around 100 million users to 1 billion users, whereas Visualize Bitcoin expects adoption from 100 million to 1 billion users operating accounts at cryptocurrency exchanges to take roughly 4 years,” the company wrote in its report.
“Data shows that the citizens of India tend to be natural visionaries and with Web 3.0, India has the opportunity to harness its core resources—its technologically savvy youth—to be a global leader in digital assets and Web 3.0. With the right policies and regulatory framework, India’s regulators can bring safety, combined with hope and prosperity to India,” added Kapil Rathi, co-founder and chief executive officer of CrossTower.