Parliamentary Committee on Finance selects virtual digital assets for 2024-25 examination

The announcement, published as Item No. 3141 in the latest edition of the Lok Sabha Bulletin-Part II on August 14, reflects India's growing focus on emerging digital asset technologies amid global discussions on their economic impact.

The decision follows a formal submission made in late July by a delegation of leading Web3 and digital asset stakeholders, including Digital South Trust, Bharat Web3 Association, Hashtag Web3, CoinDCX, BlockOn Ventures, and KoinBX. The delegation presented a set of policy recommendations to the Chairperson of the Committee, calling for innovation-friendly regulation to unlock a USD 100 billion Web3-driven economy by 2035.

According to the industry, a well-defined and adaptable regulatory framework could enable India to generate over 7 million jobs, attract USD 2 billion in annual foreign investment, and promote transparent and inclusive financial systems.

Sudhakar Lakshmanaraja, Founder of Digital South Trust, commented, "India is in a unique position to become a global leader in the Web3 space. The government's focus on VDAs and a regulatory framework will provide the clarity necessary for the industry to flourish, driving innovation, investment, and job creation."

Vedang Vatsa, Founder of Hashtag Web3, added, "Virtual digital assets can contribute to growth by enabling new business models, creating opportunities across industries, and enhancing digital economies globally. With appropriate regulatory frameworks, these assets can bring significant benefits to various sectors and help drive innovation forward."

Web3, often referred to as the next evolution of the internet, is based on decentralised technologies like blockchain. It prioritises user control, data ownership, and transparency. Virtual Digital Assets (VDAs)--which include cryptocurrencies, stablecoins, and tokenised assets--form the backbone of this ecosystem. These digital assets enable new forms of economic activity, from peer-to-peer transactions to decentralised finance.

The delegation emphasised that VDAs and Web3 technologies could significantly contribute to India's long-term development goals, including Digital India and Viksit Bharat 2047. By enabling more inclusive financial systems and fostering innovation, these technologies have the potential to reshape how value is created and exchanged.

The committee's detailed study will offer insights into the regulatory, economic, and technological aspects of VDAs in the Indian context. It is also expected to guide the creation of a balanced framework that supports innovation while safeguarding user interests and financial stability.

This initiative places India on a proactive path toward harnessing the potential of digital assets in a rapidly evolving global digital economy. (ANI)