Freedom
There is the other side of the coin also. Skeptics claim that bitcoin is used for money laundering and ransomware. There are many bad uses of cryptocurrencies which offer (to a large extent) anonymity and untraceability. And so, “national interest” and “security” become the reasons why a new regulation is brought in. And rule by rule, a new industry is killed. Can crypto challenge fiat currencies? Perhaps. And maybe there should be competition if one looks at how central banks (especially, the US Fed) have printed trillions of dollars in the past 15 years and debased currencies by creating rampant inflation. Every action has a reaction, and entrepreneurship and technological innovation cannot be stopped. Yes, there will be the wrong uses also, but that is true for almost anything.
The doomsday scenarios forecast by so-called experts find favour with risk-averse policymakers – most of whom have lived in rent-free accommodation all their life, and have little interaction or understanding of the real world. They have no skin in the game. No one is going to hold them accountable for their actions. They do not pay a price for their bad policies. It requires bold and visionary political leadership to rise above the short-sightedness and anti-business sentiment so prevalent in policymakers worldwide.
India has such an opportunity with Web3. It should lead the world by “unlocking Web3.” All it needs is a decade or so of permissionless innovation. Entrepreneurs are the ones who will drive wealth creation and enlarge the pie for all; governments only do redistribution and are mostly engaged in shrinking the pie with their bad policies. Web3 and its ecosystem of gaming, metaverse, DAOs and the likes is uncharted territory. That is why it should be left alone. A commitment needs to be made by government officials that no obstacles will be put in the path of entrepreneurs. For the first time, India has a mix of entrepreneurs, investors and capital who can help build out new industries. What they need is freedom.
Web3 offers India an opportunity to lead. There are many inefficiencies that it can solve. Centralisation has failed in many areas like land records, agricultural marketplaces, education, healthcare, digitisation of kirana stores, and so on. Maybe Web3 and its decentralised approach can work. In a way, ONDC (Open Network for Digital Commerce) is a decentralised initiative – it is Web3-like without the underlying crypto framework.
India has much catching up to do in the world. It needs sustained growth of 10% and higher for a generation to create prosperity. That is not going to happen through government subsidies which tax the rich and distribute via welfare schemes to the poor. India needs its entrepreneurs to solve problems and flourish. This is the realisation that still doesn’t exist in policymakers.
Web3 is a test for India. We missed the Web 1.0 and 2.0 waves that created trillions of dollars in wealth and made lives better. We cannot afford to miss another one. Political leadership is about not just making new policies, but also knowing when to step back. Let’s not send Indian entrepreneurs to foreign shores – like was done by another set of political leaders 50-60 years ago.
