India is all set to embrace blockchain, distributed ledger technology (DLT) and tokenization of real-world assets (RWAs) by 2025, as provincial governments and startups adopt innovative approaches to deliver effective solutions. The South Asian country wants to become a digital superpower and at the same time use emerging technologies as a catalyst for economic growth.
“By 2025, I expect more robust regulations that drive blockchain adoption at the enterprise level, with tokenization playing a key role in sectors such as real estate, finance and retail,” said Rohan Sharan, founder and CEO of Timechain Labs, an on-chain application development company that uses BSV blockchain technology.
For example, the provincial government of Odisha has become the first state in India to implement blockchain technology, marking a groundbreaking step in improving support systems for survivors of gender-based violence.
“The Shakti application represents a bold and innovative approach to tackling gender-based violence in Odisha. By using blockchain technology, we ensure that survivors receive dignified, timely and trauma-free support. As we prepare to scale this initiative across the state, we are not just improving processes – we are redefining what it means to provide survivor-centered care,” said Pravati Parida, Deputy Chief Minister of Odisha.
Clarity of regulations
By 2025, India’s blockchain ecosystem could also see regulatory clarity as the International Financial Services Centers Authority (IFSCA) is expected to submit a report with guidelines, according to a local media report. Final regulations could be developed based on this report.
IFSCA is a government initiative headquartered in GIFT City in the western Indian state of Gujarat.
“Looking ahead to 2025, we can anticipate the rollout of more comprehensive regulations that will support the integration of blockchain into daily business practices. Establishing a robust policy framework is crucial for promoting innovation and ensuring consumer protection,” Sharat Chandra, founder of EmpowerEdge Ventures and a startup enabler, told CoinGeek.
In September 2023, IFSCA was formed as a seven-member committee of experts to develop regulations and policy guidelines for tokenizing real and physical assets, and to examine the legal validity of smart contracts. The idea behind forming such a committee was to create a regulatory framework for blockchain as a technology and tokenization.
“Looking ahead to 2025, India is poised for deeper integration of blockchain into healthcare, supply chains and MSMEs (small and medium businesses). The focus is expected to shift to interoperability, scaling blockchain applications for mass adoption and formulating clear regulations,” Raj Kapoor, founder of India Blockchain Alliance (IBA), told CoinGeek.
“The potential for public-private partnerships and India’s vast developer base could drive transformative innovations. However, to achieve this vision, challenges such as regulatory clarity, infrastructure scalability and public awareness will need to be addressed. “India’s trajectory reflects its growing prominence as a hub for blockchain innovation, providing a model for global adoption while contributing to the resilience of the digital economy,” said Kapoor.
Greater adoption in the financial sector
2025 is also expected to see greater adoption of blockchain among banks and financial institutions as they integrate the technology for secure and efficient transactions, points out Amit Kumar Gupta, a lawyer at the Supreme Court of India.
Interestingly, the Reserve Bank of India (RBI) has recognized that the growing adoption of blockchains and distributed ledger technology has strengthened support for tokenized deposits, or digital representations of traditional bank deposits hosted on a secure blockchain. Tokenized deposits can have a range of applications in domestic and cross-border payments, trading and settlement, and cash collateral management. Furthermore, because they are programmable, they can integrate smoothly into smart contracts, combining payment data and value to enable ‘atomic’ settlement.
In 2025: “Anticipate clearer government guidance, potentially increasing investor confidence and mainstream adoption. Indian developers are likely to focus more on building scalable dApps, driving innovation in the blockchain space,” added Gupta.
Watch: ‘Disruptive’ blockchain could be useful for India
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