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India celebrates its 75th Independence Day today. In these years of cherished freedom, we as a country have grown to become a top five global economy even leapfrogging the United Kingdom in recent years. Given the huge amount of wealth generated in this country, we would expect its citizens to lead a quality life with self-sufficiency with respect to education, health and personal finance. However, data suggests that we are falling behind in some metrics especially with respect to personal finance.

India’s GDP (nominal) per capita estimate of $2,190 a year ranks 144 out of the 194 countries in the world according to IMF World Economic Outlook. An estimated 190 million Indians are currently unbanked; they do not have the means to earn a fixed deposit rate on their savings which usually are lower than inflation rates. Among the banked Indian populace, only a few have exposure to assets such as stocks, derivatives and even realty. India is indeed becoming wealthy but not every Indian has equal access to investments and technology that can make them self-sufficient in the long run. Unequal distribution of wealth can polarize even the strongest nations and disrupt peaceful ecosystems that has taken years to build.

Opportunity & Access

The emergence of blockchain and cryptocurrencies present a unique opportunity for India to address this growing issue. Bitcoin, the beacon of cryptocurrencies, is built on the idea of equal opportunity and access. It does not differentiate people by nationality, geography, class or quantum of investment. Given the internet, a person based in a tier 4 town in India has similar access to cryptocurrencies as a person based in New York, US. There isn’t a minimum investment required to gain access too – in India, users can invest in Bitcoin starting from Rs.10. Moreover, all gains are equal and proportional to the investment made.

New age wealth creators have often relied on entering a high-risk asset early and ride on the success of the ecosystem. Much like the internet boom of 1990s and the telecom boom of early 2000s, cryptocurrencies have potential to be the 2020s growth story. Imagine every Indian getting an opportunity to buy early shares in Google or Facebook. Such an access is available now with cryptocurrencies where the investment is on based on the underlying tech that powers innovation and seem safer than betting on one company. Bitcoin and Ethereum, the top two cryptocurrencies, have outperformed popular assets such as Gold, Silver and even Crude Oil in the last 10 years and by a margin. This trend is expected to continue for a foreseeable future and hence investors will do well if they have a minimal share of their portfolio in cryptocurrencies.

CBDCs, DeFi & Job Creation

The Reserve Bank of India (RBI) is said to be exploring the possibility of a Central Bank Digital Currency (CBDC), essentially the digital rupee. Prime Minister Narendra Modi announced the introduction of e-RUPI, a digital payment solution, early this month. Many see this as a precursor to a blockchain based CBDC i.e a digital rupee, that will onboard all Indians at one go. An access to the internet will essentially become an access to finance.

Decentralized Finance (DeFi) will boost innovation in many aspects of our lives including removal of intermediaries for payments and wealth transfer. Indian companies can lead this innovation initiative globally and can build a workforce that supports blockchain-facilitated products launched on a global scale. India can easily create millions of new jobs in the next decade. Job creation will enable financial freedom eventually.

The next few years will define how we as a country proceed. Blockchain technology and cryptocurrencies have the potential to boost a section of India that has been underserved in the past and equip them with tools, technology to gain freedom with respect to finance.

(The author is CEO and Co-founder, Giottus Cryptocurrency Exchange. Views expressed are personal.)