Dilip Chenoy, president of the Bharat Web3 Association, called for a serious national debate on tokenisation and virtual digital assets.
The call for a formal policy discussion comes as India faces the risk of losing its competitive edge in the global digital economy. While the country has seen success in digital payments, the lack of a clear regulatory framework for token-based applications could stifle innovation.
Chenoy said India may lose out in this space if the government and industry do not establish a cohesive strategy. He pointed to the increasing traction of token-based applications such as Solana and XRP as evidence of a shifting global landscape. Without a defined path forward, the association suggests that domestic developers and investors may struggle to compete with international counterparts.
This push for tokenisation follows a period of significant growth in India's digital ecosystem. Public digital infrastructure, including Aadhaar and the Unified Payments Interface (UPI), has transformed how money moves over the last decade [1]. These systems provided the foundation for a digital-first economy, but Chenoy said that the next phase of evolution requires a deeper engagement with virtual assets.
The Bharat Web3 Association is advocating for a framework that balances security with the ability to scale. The goal is to ensure that India does not merely consume foreign technology but leads in the creation of Web3 protocols. Chenoy said the conversation must move beyond simple regulation to a broader strategic debate about the role of virtual assets in the national economy.
“India may lose out in this space”
This development signals a growing tension between India's successful implementation of centralized digital public infrastructure and the decentralized nature of Web3. If the government adopts a restrictive approach to virtual digital assets, it may drive talent and capital toward more permissive jurisdictions, potentially mirroring the brain drain seen in previous tech cycles.
