Tokenization and digitalization are transformative technologies that can accelerate India’s economic growth. Using digital technologies like blockchain, physical assets can be converted into digital tokens, making them easier to manage, trade, and leverage.
Tokenization of land and property enhances liquidity and access to finance also enabling fractional ownership. Tokenizing land allows assets to be divided into smaller, tradable units, opening real estate investment to a broader population, including rural and semi-urban areas. It also increased liquidity as tokenized assets enable partial sales, unlocking tied-up capital and improving credit access for entrepreneurs. It also brings in transparency and trust in transactions by creating foolproof records. Blockchain creates a tamper-proof history of ownership, reducing disputes and corruption. Digital records minimize bureaucratic delays, making transactions more efficient. It also empowers rural and semi-urban communities as it formalizes land titles, enabling access to government support and financial products. Easier access to property assets supports local development projects and small businesses.A few countries have success stories for us to emulate. The Swedish land registry tested blockchain for property transactions, enhancing transparency. In
Georgia blockchain-based land registries reduce fraud and disputes.
Apart from land, Indians also have large holdings of gold. Digitalization of gold
improves liquidity and market efficiency by converting physical gold into digital tokens for easier trading and enhancing liquidity. It also lower transaction costs by reducing expenses associated with storage, transport, and verification. It formalizes the market by shifting informal gold trading into the formal economy, improving tax compliance and security. Blockchain ensures secure and transparent transactions. It also supports economic growth. Digital gold attracts domestic and foreign investors. It connects with wallets and payment systems, strengthening India’s digital economy.
In Switzerland fintech firms offer secure, tokenized gold investments. UAE has Blockchain based gold trading platforms improve efficiency and attract investors. In India, GIFT City has started India’s first regulated tokenization platform enhances liquidity in real estate. AP’s Bhoomi project has initiated Blockchain-based land registry system, which ensures transparency and reduces fraud. MMTC-PAMP offers secure digital gold investments backed by physical gold. By adopting tokenization and digitalization, India can tackle liquidity constraints, improve transparency, and reduce inefficiencies in real estate and gold markets. These technologies can empower populations, integrate them into the formal financial system, and drive broader economic growth. Learning from successful international models, India can use these innovations as key pillars of its economic development strategy. Tokenization,Digitalization
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