Table of Content

05 09 14
Crypto Industry Global Evolution of Emerging Trends in Crypto
Overview CryptoTech Industry
Overview Growth of Crypto Industry Bitcoin as digital gold
Key Concepts and Use Cases and Case Studies Ethereum and smart contracts
Terminologies Decentralized finance
The wave of tokenization
Non-Fungible Tokens
Crypto Capital
CBDCs and Public Sector
Adoption’at the end

23
Crypto Industry
Landscape in India
Role of CryptoTech to solve
emerging challenges and drive
efficiencies
32 44
Potential Benefits of CryptoTech in India – The Way
Crypto Industry Forward
Benefits for Citizens, the Key impediments and areas of priority
Industry,and the Indian intervention
Economy Need for collaborative consultations
 CRYPTO INDUSTRY IN INDIA

Foreword
India has a very dynamic and rapidly growing technology
ecosystem. With innovation and emergence of new the
digital technologies, technology sector in India continues
its growth momentum in 2021.
The emergence of Crypto technology showcases a
decentralized, block-less and miner-less system which
holds promise of greater efficiencies, faster pace of
business processes, and significant economic benefits.
Globally, organizations and countries have started
realizing the benefits of early adoption of CryptoTech
Nischal Shetty and the technology holds similar, if not greater potential
Sangeeta Gupta Nischal Shetty
in the Indian context.
Senior Vice President and Founder and CEO
Founder and CEO
Head of Strategy It is heartening to see that industry and government
stakeholders in India are taking a very pragmatic
approach towards Cryptotech with use-cases being
explored in areas ranging from health & safety, land
registry, education, farm insurance, to fertilizer
subsidies.
With over 230 CryptoTech startups in the country, the
country is already witnessing the benefits of crypto
in form of emergence of new class of investors, and
promotion of art through NFT. Over the next decade,
we expect the technology to make significant advances
leading to innovative use-cases, magnifying the positive
impact at a grassroots level.

3

Executive Summary
CryptoTech is a fast growing Industry globally
• Estimated to be USD 1.6 billion in 2021, Crypto
Industry globally is expected to reach a size of
USD 2.3 billion by 2026
• CryptoTech application in trading accounts for
70% of the market, followed by P2P payments,
retail and remittances
Bitcoin, DeFi, and Crypto Capital Are Driving the
Crypto Market Growth
• Bitcoin has become the fastest asset to reach a
market cap of USD 1 trillion surpassing gold and
US Dollar
• Decentralized finance market size has jumped
100x over the last one year
• USD 86 billion in lending on DeFi platforms
as of May 2021, up ~650% from $11 billion in
October 2021
4
CryptoTech in India Has Started To Pick up
• USD 74.2 million in market size in India in
FY2021, a growth of 39% in last five years
• CryptoTech provides employment for 50,000
individuals in India
• USD 6.6 billion in Investments from retail
investors
• CryptoTech landscape is fast evolving with
– 230+ startups
– 150+ proof of concepts and projects
• 60%+ States In India Are Emerging As
CryptoTech Adopters
• 15 million+ retail investors in crypto in India
CRYPTO INDUSTRY IN INDIA
CryptoTech Market In India Poised To Grow 2X
Faster, and Create 800k+ Jobs By 2030
• USD 184 billion in economic value addition by
Indian Crypto Industry by 2030
• CryptoTech Market is Expected to Reach USD
241 million by 2030
• Crypto Market is likely to account for 15.6
billion in investments
• CryptoTech promises to solve emerging
challenges such as Health & safety, Digital
identity, Trade finance, and Remittances
Key Areas Of Priority Intervention To Promote
The Nascent Technology
• Awareness, Regulatory Ambiguity and Higher
Capex Cost Of Crypto Technologies Are
The Key Impediments In Future Growth of
CryptoTech in India
 CRYPTO INDUSTRY IN INDIA

CRYPTO INDUSTRY
OVERVIEW

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 CRYPTO INDUSTRY IN INDIA

Key Components of Crypto Tech

CryptoTech is essentially a technology secured by cryptography which enables exchange of data and facilitates transactions which are
duplicated and distributed across the entire network of computer systems on the blockchain

HARDWARE & DATA STORAGE ENTERPRISE BLOCKCHAIN

A type of permissioned blockchain that can be used to A type of permissioned blockchain that can be used to
streamline business processes at scale, such as track supply streamline business processes at scale, such as track supply
chain goods or settle global payments
01
chain goods or settle global payments
Hardware-based encryption is the use of computer hardware to
assist software, or sometimes replace software, in the process
07
of data encryption MINING
A process in which transactions for various forms of

06
cryptocurrency are verified and added to the blockchain digital
IDENTITY, AUTHENTICATION & SECURITY ledger
The process of verifying the identity of a user, Crypto
process, or device, often as a prerequisite to allowing
access to resources in an information system 02 Technology
CRYPTO CURRENCIES
A digital currency in which transactions are verified and records
05 maintained by a decentralized system using cryptography, rather
than by a centralized authority
INFRASTRUCTURE &
APPLICATION DEVELOPMENT 03 04
A set of roles, policies, hardware, software and CRYPTO-EXCHANGES
procedures needed to create, manage, distribute, A cryptocurrency exchange, or a digital currency exchange, is a
use, store and revoke digital certificates and manage business that allows customers to trade cryptocurrencies or digital
public and private key encryption currencies for other assets, such as conventional fiat money or other
digital currencies

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 CRYPTO INDUSTRY IN INDIA

CryptoTech Industry Value Chain

PHASE II
TESTING
NO YES
HARDWARE
INTEGRATION
SOFTWARE

DESIGN FINAL PRODUCT

COMMISSION • Testing and Inspection

• Chip Manufacturer
• Development

END USER
• Peer-to-Peer Payment
R&D • Remittance
• Prototype
• Retail
• Development
• E-Commerce
• Others

NVIDIA Corporation, Xilinx Inc, LeewayHertz, IBM (US), Microsoft (US) Bitmain Technology Bitpay Inc, Xapo Ltd, Coinbase, Gemini, Aave
Treehouse Technology Group Ltd, ImpactQA

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 CRYPTO INDUSTRY IN INDIA

CryptoTech has Significant Interdependence of Various Emerging

Technologies
DATA MANAGEMENT

1. Improving Standardization
TRANSACTION STORED 2. Privacy
ON CLOUD/ DATA CENTER 3. Security
4. Scalability of Data

IDENTIFY MANAGEMENT

TRANSACTION DETAILS 1. Authentication via a Blockchain-Based

ON DISTRIBUTED LEDGER Identity
2. Encryption
3. Digital signatures

TRANSACTION MANAGEMENT
EXECUTION AND
TRANSACTION 1. Automatization via Smart Contracts
COMPLETED THROUGH 2. Decentralized Micropayments
SMART CONTRACTS

SMART CONSUMERS/ USERS

1. Autonomous agents (i.e., sensors, cars, machines,

CONSUMERS & INDUS- trucks, cameras, and other IoT devices)
TRIES OF FUTURE 2. Digital Twin leveraging IoT, Blockchain & Cloud
3. Autonomously Decisions

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 CRYPTO INDUSTRY IN INDIA

CRYPTO INDUSTRY
GLOBAL EVOLUTION

9

38 Years of Cryptotech
Evolution Timelines of Crypto Tech
Implemented – Digicash a
cryptographic electronic payment.
This would require software in order
to withdraw notes from a bank and
designate specific encrypted keys
before it can be sent to a recipient)
1983
Conceived – ecash was conceived
as an anonymous cryptographic
electronic money by American
cryptographer David Chaum
In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in
an MIT mailing list
10
Bitcoin – Bitcoin was first
decentralized cryptocurrency
created by Satoshi Nakamoto
using SHA-256, a cryptographic
hash function, in its proof-of-
work scheme
1995 2008
White Paper – Satoshi
Nakamoto publishes a
detailed White paper
Cryptocurrency Boom and
ICO – 1800+ cryptocurrency
specifications existed. Cardano
has been the largest proof-of-
stake cryptocurrency since 2018.
Initial coin offering (ICO)
is a type of funding using
cryptocurrencies.
2009 2011
Decentralized Domain Name
System (DNS) – Namecoin was
created to help decentralized
DNS system which was crucial
for long-term Internet privacy
and censorship reduction.
Litecoin, Peercoin.
CRYPTO INDUSTRY IN INDIA
Legal Tender – June 2021
El Salvador became the
first country to accept
Bitcoin as legal tender.
Way
2018 2021 Forward
First Crypto Stock Listing
– Coinbase, the largest
cryptocurrency exchange
in the U.S got listed and is
publicly traded.
 CRYPTO INDUSTRY IN INDIA

The 2009 Sub-Prime Crisis was a Catalyst for CryptoTech Development

Tradition Transaction Privacy Models

TRUSTED
IDENTITIES TRANSACTIONS COUNTERPARTY PUBLIC
THIRD-PARTY

IN-FINITE MONEY
2008 FINANCIAL GOVERNMENT INFLATION
SUPPLY
CRISIS/ SUB- BAIL OUTS (ZIMBABWE AND
(ARTIFICIALLY PRINTING
PRIME CRISIS (LEHMAN CRISIS) VENEZUELA)
CURRENCY)

New Age Transaction Privacy Models

IDENTITIES TRANSACTIONS PUBLIC

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 CRYPTO INDUSTRY IN INDIA

Global Crypto Industry is Expected to Cross $1.6Bn in 2021, and $2.3 Bn

by 2026
Global Crypto Industry (In $ Billion) 5% 1%
Crypto Market Split by Type and Application
$2.3 8%
$2.1
$2.0
$1.8 16%
$1.7 Software , 16% Hardware , 84%
$1.6

70%

Transaction , 24% Mining , 76%

Trading
Payment: Peer-to-Peer Payment
Ecommerce
Retail
2021 2022 2023 2024 2025 2026 Remittance

Covid-19 is leading to an acceleration of Crypto adoption-

Banks Buying Crypto – Global banks have started buying crypto for the first time due to which Bitcoin, Ethereum, and other digital currencies have garnered significant attention.

Banks Owning Blockchain-Based Systems – Global banks across US, Europe & Asia started creating their own blockchain-based systems, including digital currencies, to enable B2B
cryptocurrency payments between their customers.

Corporations Accepting Crypto – Globally 20+ leading corporations started accepting crypto for payments from Microsoft to PayPal. 2020 PayPal announced that its customers will be able to
buy, sell, and hold Bitcoin and cryptocurrencies using their PayPal accounts, allowing customers to buy things from the 26 million sellers who accept PayPal.

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 CRYPTO INDUSTRY IN INDIA

Globally, Crypto Industry is Playing a Transformative Role

in Strengthening eGovernance and Public Health
Key Accomplishments of CryptoTech

Colombia Colombia United States – Change Moscow, Russia

Healthcare
Government Digital Transparent Smart City
Transparency Democracy Healthcare Moscow
Reduced Corruption Inclusive Electoral Processes Transaction
Every year, governments 10% Colombians living ~15% Cost Reduction in Claim $10M annual savings from
spend between 10% and abroad Registered to vote in Processing & Administrative eHealthcare system
30% of national GDP on consulate or Costs. 13% average increase in travel
procurement embassy US Spends $315 Billion for speed since 2013
Billing, Insurance Related
Inefficiencies

CryptoTech-based Blockchain-based Voting CryptoTech-powered CryptoTech-based

e-Procurement Intelligent Healthcare Hyperconnected digital
Network platform

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 CRYPTO INDUSTRY IN INDIA

TRENDS IN
CRYPTO INDUSTRY

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 CRYPTO INDUSTRY IN INDIA

7 Key Trends Driving Growth of CryptoTech

Key Accomplishments of CryptoTech

01 02 03 04 05 06 07
Bitcoin as Smart Decentralized The Wave of Non-Fungible Rise of Crypto Increased
Digital Gold Contracts – Finance Tokenization Tokens Capital Adoption of
Ethereum CBDCs

Bitcoin as Smart Contracts – Decentralized Finance Tokenization Non-Fungible Tokens Crypto Capital – Public Sector Adoption
Digital Gold Ethereum Driving Alternate Source of in form of CBDCs
Growth Funding

$1 Trillion Market $150 Million $48 Billion $1.9 Billion $250 Million $86 Billion in 5 Countries By
Cap Market Size Market Cap Market Size Market Cap Lending Deployment

12 Years to Trillion 30+ Countries 10+ Countries 21+ Countries 222,179 Active 2oo+ DeFi Lending 15 CBDCs Under
Deployed Deployed Deployed Wallets Platforms Development

<10 Years to 75M 6,800+ Enterprise 88X Growth in *FINMA 1% Currency 650%+ Growth 14 CBDCs
Users Users a Year Approved Market share YoY Under Pilot
Platform Phase

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 CRYPTO INDUSTRY IN INDIA

01. Bitcoin as Digital Gold: Fastest Asset to Breach USD 1 tn Mark

Bitcoin Penetration is Bitcoin is the Fastest Asset Bitcoin is Fifth Largest Currency
Faster than Internet to Reach $1 Trillion By Market Cap
Internet
Users Growth Drivers/ Adoption
(Mn) Indicators
Adoption rates of Internet and Blockchain wallet users
Market Cap in $ Trillion
600
~1% of Bitcoins held by 26 Publicly
500
Indian Rupee (INR) $0.47 Traded Companies
500M Blockchain wallets
by 2025 Japanese yen (JPY) $1.09
400
69 Large Corporates accept Bitcoins as
300 Bitcoin (BTC) $1.10 payment as of 2021

200 75M Blockchain wallets in Chinese Yuan (CNY) $1.41

2021
Growth Drivers/ Adoption
Indicators
100 Euro (EUR) $1.43

0 US Dollar (USD) $2.00 ~15.8% of remitters are already

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
using cryptocurrency for money
Number of Internet users (lhs) Blockchain Gold $10.99 transfer ($95.96 billion in 2020 Digital
Users
Number of Blockchain wallet users (rhs) (Mn)
remittances)

~$2Trillion worth global movement

3.9% 18,000+
Worlds Population Businesses and tracking of goods and services
Owns Accepting supported by blockchain
Cryptocurrency Cryptocurrencies

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 CRYPTO INDUSTRY IN INDIA

02. Smart Contracts: Ethereum Hold Largest Share in Smart Contracts

Global Smart Contracts Market and Corporate Driving Adoption of Ethereum
Role of Governments Smart Contracts
20+ Countries Testing/Deploying Smart Contracts in the Public Sector
Forbes Billion-Dollar Blockchain Babies:

8+ Countries 6+ Countries 4+ Countries 3+ Countries 1. Of the fifty companies, thirty-two are building on Ethereum or
Enterprise Ethereum derived blockchains platforms. Over Ten
Online Voting Registration of Digital Identity *Govt companies are using own Ethereum blockchain.
Property/Land Administration
2. ~6,863+ Companies are using Enterprise Ethereum derived
blockchains for Smart Contracts

50
Forbes Billion-Dollar
$245 Million Global Smart Contracts market by 2024 and growing at 18.1% Blockchain Babies

$ Million $245 32
$208
Companies
$176
$149 Building on Ethereum
$126
$107 or Enterprise
Ethereum
blockchains
platforms
2019 2020 2021 2022 2023 2024

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 CRYPTO INDUSTRY IN INDIA

03. DeFi (Decentralized Finance): $85 Billion Total Value Locked in DeFi
Global Decentralized Finance (DeFi) DeFI (Decentralized Finance ) Adoption Indicators
Market Size
$85.0 Traditional Financial
Products in DeFi Market
Total value locked (TVL) of cryptocurrency in DeFi
(In $ Million)
Monetize Blockchain
Gaming

Cross-Chain-Technology
Adoption Indicators
To Scale

Decentralized Exchanges
(DEXs) Fuel DeFi Growth
$8.5

0 $0.2 $0.5
Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Governance Tokens Become
More Important

Key 2020 DeFi Trends: Drivers of Adoption

1. Decentralized finance (DeFi) is emerging as a tool for smaller businesses in developing markets, particularly for
remittances and small loans
2. The transaction banking industry is beginning to see DeFi’s potential to overhaul the inflexibility of present
processes.
3. Uptake of DeFi in transaction banking could open up new capital opportunities for larger companies and
increase liquidity for SMEs.
1. Two recent developments in DeFi have made significant progress towards
plugging the gaps
2. Availability of stablecoin pegged to the USD, such as USDC, USDT (Tether),
BUSD (Binance) and Dai (Maker), is growing.
3. Interoperability protocols, such as the Inter-Blockchain Communication
protocol and Popskip, have been released for both public and private
blockchains.

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 CRYPTO INDUSTRY IN INDIA

04. Tokenization: $1.9 Billion Market Largely Driven by Digital Payments

Global Tokenization Market Size Tokenization Adoption Indicators

Contactless Payments : 90%

$4.7
contactless payments due to
COVID-19 outbreak
$4.0

$3.3

$2.8 Rising number of financial

frauds and data breaches
$2.3
$1.9 Adop�on Indicators
Rising need for enterprises
to be adhered to the
stringent regulations

Proliferation of cloud -based

2020 2021 2022 2023 2024 2025
tokenization solutions and
services

Key 2020 Tokenization Trends: Drivers of Adoption

1. Tokenization is a process by which Primary Account Numbers (PANs) are replaced with surrogate
values called tokens. The security of tokens relies predominantly on the infeasibility of determining
original PANs knowing only surrogate values.
2. 15+ Countries are using Tokenization. Security tokens are taking the world by storm and many
progressive legislators and regulators have begun defining the lexicon within their jurisdiction’s laws.
3. The transaction banking industry is beginning to see DeFi’s potential to overhaul the inflexibility of
present processes.
1. Major factors driving the growth of the market are increasing need to stay
compliant with regulations, rising demand for cloud-based tokenization solutions
and services and increased alignment of customers toward contactless payments
etc.
2. Government initiatives toward tackling financial frauds and compliance
regulations initiated by countries aimed towards enhancing cybersecurity are
expected to drive the need for robust tokenization practices in APAC.
3. Contactless cards and digital first credit cards are also expected to fuel the
growth of tokenization in North America

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 CRYPTO INDUSTRY IN INDIA

05. Non-Fungible Tokens (NFT): USD 350M Market Largely Driven by Art,
Collectibles and Gaming Industry, Inching Towards Mainstream Adoption
Global Non-Fungible Token (NFT) Market Size in $ MN Sectors Driving Adoption and Growth

Non-fungible token (NFT) in $ Mn <1% Penetration across Sectors leaving a huge potential for Non-Fungible Tokens (NFT) to disrupt
Metaverses, Art/Fashion, Gaming, Sports, Collectibles and Utility over next decade
$1,882
NFT Market Share Overall Size NFT Market Share Overall Size

$1,345
Metaverses
25% $ 280B 25% $ 280B
$960 Sports

$686
$490 23%
$ 12B 23%
$ 12B
$350 Arts/Fashion Collectibles
$250

2020 2021 2022 2023 2024 2025 2026

23%
$ 176B 23%
$ 176B
Gaming Utility

Key Insights for Non-Fungible Tokens (NFT):
1. NFT is short for “Non-Fungible-Token”, and it is essentially a special token with a unique ID that is impossible
to replicate.
2. Digital Ownership Rights – NFTs help the digital artists to attain ownership for their digital artwork. They can
receive more income through NFTs, as they can get royalty each time the NFT is transacted after the initial
sale.
3. NFT trading was worth $250 million in 2020, a 300% increase from the previous year and 2021 it touched
$350 million a 40% growth. NFTs have seen application in digital art, trading cards, collectibles, or video
games artefacts, digital music, concert tickets, etc. and will soon be used as collateral in decentralized finance.
Drivers of Adoption in 2020 and 2021
1. Growing Adoption in Gaming Industry – Gaming Industries are coming up with innovative
advance games such as Strategy Role Playing Game, where the user can create a game
character and using NFT can get the ownership of created character which later can be put up
on sale on various marketplace.
2. Increasing Asian Penetration – WazirX India’s Bitcoin and cryptocurrency exchange & trading
platform launched a non-fungible tokens (NFT) marketplace for Indian artists and creators for
the auction of their digital assets and earn royalties. Asian and India market is unorganized and
largely driven by large players so NFT can play role similar to eCommerce which aggregated
sellers

20

06. Crypto Capital and 5G Boost: CryptoTech is Facilitating Funding for
Startup Ecosystem and 5G Will Bolster DeFi Use-Cases and Adoption
Crypto Capital is fast emerging as an alternate for VC investments
with rise in fundraising on Blockchain
Crypto Finance and Lending
USD 86 billion in lending on DeFi platforms as of May 2021, up
~650% from $11 billion in October 2021.
Funds raised by Framework will support several DeFi tokens and applications as well as
centralized projects experimenting on DeFi blockchains and services.
The massive growth of DeFi applications, most of which run on the Ethereum blockchain, has
put the spotlight on digital assets and lifted major cryptocurrencies such as bitcoin and ether
to record highs
21
CRYPTO INDUSTRY IN INDIA
5G will accelerate decentralized finance use-cases and bolster
crypto adoption
5G would reduce current financial bottlenecks and enhance blockchain-
powered decentralized projects while simultaneously bolster crypto
adoption in India; attributable to rising smartphone users
Crypto wallets with tangible UX operate as a gateway to an unexplored
digitally financial infrastructural world. 5G is the backbone for manifesting
this vision. While complex functions run in the background, low latent 5G will
enable the crypto wallet’s UX to work seamlessly.
5G will simplify the crypto usage experience. Crypto wallets can be imagined
as mobile wallets plugged into the Web, along with the promising landscape of
streaming and gaming.
The potential of crypto with 5G hinges on the expansion of bandwidth and
power consumption support. 5G will bring in more crypto users as it is all
set to provide fast, byte-sized mobile phone interactions, precisely what the
young generation demands.
 CRYPTO INDUSTRY IN INDIA

07. CBDCs : Growing Adoption of Central Bank Digital Currencies and

Positive Shift in Governmental Outlook Towards CryptoTech
A CBDC is the legal tender issued by a central bank in a digital form. It is the same as
86% of Central
a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is
banks are actively
different
86% researching the
potential for CBDCs

Drivers of Adoption of CBDC

1. Central banks, faced with dwindling usage of paper currency, seek to popularize a
more acceptable electronic form of currency (like Sweden)
60% of Central
2. Jurisdictions with significant physical cash usage seeking to make issuance more
efficient (like Denmark, Germany, or Japan or even the US) 60% banks are actively
experimenting with
3. Central banks seek to meet the public’s need for digital currencies, manifested the technology
in the increasing use of private virtual currencies, and thereby avoid the more
damaging consequences of such private currencies

14% of Central banks

are deploying pilot
In India, The Reserve Bank of India (RBI) has stated that it will soon begin working towards the
projects for CBDCs
“phased implementation” of its own digital currency.
14%
The first trials of the e-currency in India is likely to commence by the end of 2021

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 CRYPTO INDUSTRY IN INDIA

CRYPTO INDUSTRY
LANDSCAPE IN INDIA

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 CRYPTO INDUSTRY IN INDIA

While Still at a Nascent Stage, CryptoTech Market in India has Started to

Pick up
Indian Crypto Industry Market Size, in USD Mn.
Crypto Employment
50,000 people across trading, software
74.2 development, analytics, and other functions

Crypto Investments
53.1
USD 6.6 billion investments in crypto
assets by retail Investors in India

Crypto Startups
Crypto Industry in India has
registered a growth of Over 230 crypto startups operating in
India in Crypto space
39%
Between FY 2016 and FY
2021 Projects and Proof of Concepts
India has witnessed deployment of over
150 crypto Projects and POCs
FY 2016 FY 2021

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 CRYPTO INDUSTRY IN INDIA

CryptoTech is one of the Fastest Growing Technology Sub-sector in

India
In terms of revenue growth, the Crypto Industry in India is growing at 4x the pace of tech Industry in the last two years

40%
Revenue Growth

25% Technology Sector

10% to 11%+ in last 2 years
15%
8% 7%
2%
CryptoTech Sector
Technology Industry Crypto Exchanges and Tech Providers* 40% to 50%+ in last 2 years
2019 2020 2021

8X Growth in Institutional Funding for Crypto Startups in India 612% Growth in Retail Holdings of Crypto Assets in India

1.16x 8.1x 9% 612%

Overall Startup Funding Crypto Startup Funding Retail Ownership of Stocks by Retail Ownership of Crypto
growth in India growth in India Value – Growth Rate Assets by Value – Growth Rate

*Growth between 2019 and 2021 YTD *Growth between 2019 and 2020
*Top 15 crypto companies in India | Source: UnearthInsight Research and NASSCOM Research

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 CRYPTO INDUSTRY IN INDIA

India’s CryptoTech Ecosystem is Fast Diversifying

Crypto Exchanges in India Crypto (Remittances) Adopters in India

Crypto Start-ups in India (Active Use Cases) Public Sector Adopters in India

Ripple LegitDoc (Digital Power Ledge Lynked.World

(Remittances) Identify) (Solar P2P Trading) (Digital Identify)

Polygon Zebi Covalent

(*Health Record/ (Digital Land (Decentralized
Certificate) Records) Data)

Indian IT Services Offering – Blockchain/CryptoTech

Note: This is not an exhaustive list of entities participating in the Indian blockchain ecosystem
Source: UnearthInsight Research
*COVID-19 Test Certificate issued by Polygon in Maharashtra

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 CRYPTO INDUSTRY IN INDIA

Fast Evolving CyptoTech Landscape in India- 230+ Startups,150+ Projects

and PoCs…
India’s Crypto Tech Landscape

230+ Crypto Start-ups 150+ Blockchain & Crypto Projects/PoCs Deployed/Product

across Sectors

Sector Wise View of Providers of Blockchain & Crypto Start-up in India Sector Wise View of Providers of Blockchain & Crypto Start-up in India

Banking and Financial Services Supply Chain and Logistics

Healthcare Others
Public Sector -
Media and Entertainment
20 State Governments 40

Banking/Financial Sevices 25

Others, 40
IT Sevices (Product) 20

Supply Media and

Chain and Entertain- Logistics/Supply Chain 8
Logistics, ment, 27
28
Healthcare/Lifescience 5

Healthcare, 20 Telecom 3
Banking and Financial Services, 220

Source: UnearthInsight Research and NASSCOM Research

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 CRYPTO INDUSTRY IN INDIA

…$270 Million Corporate Funding, 15M CryptoTech Investors in India

India’s Crypto Tech and Blockchain Landscape

Funding & Investment into Crypto Funding & Investment into Crypto
and Blockchain Start-ups in India Tech Ecosystem Currency Ecosystem and Blockchain Start-ups in India

Funding Received 1.8% of India’s Adult Population $ Market Cap of India’s

invested in Crypto Holding Crypto Assets

Million invested in Indian Blockchain

$269.7 and Crypto Startups till 2021

Billion Valuation of CoinDCX makes

$1.1 it India’s first crypto unicorn 15 Million – 2021 $40B – 2021

2.2X 20X
Invested by 25+ Banks, Financial Growth Growth
IBBIC $25M+ Services and Insurance Companies
7 Million – 2020 $20M – 2020

Invested by 20+ States across 40+ PoCs/

$50M+ Projects <1X <0.5X
Growth Growth

<1 Million – 2016 <$1M – 2016

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 CRYPTO INDUSTRY IN INDIA

Case Study: Evolution of Crypto Exchanges in India and Positive Impact

at The Grassroots Level
Started in 2018 by Nischal Shetty, Sameer Mhatre and Siddharth Menon, WazirX has capitalized on the rising tide of retail traders investing in
cryptocurrencies. Less than two years after launching, it was acquired by Binance, the world’s largest crypto exchange. In April, WazirX’s WRX
crypto token temporarily reached a billion-dollar valuation. The company has also launched an NFT marketplace to facilitate trading of unique
digital art content.

75% of cyrpto investors in India are aged Through its NFT platform, WazirX
between 18-35 years old is showcasing artwork from diverse
categories including space 3D artists,
Of these, 70% are first time investors digital artists, muralist photographers,
who have never traded in stock market canvas artists, street artists and visual
or securities before. The company has artists. Through the platform, the company
witnessed a 2,648 per cent growth in is empowering artists, creators, and
user sign ups from tier-II and tier-III collectors to create and trade unique
cities in India. digital assets.
New class of Women Financial Promotion
Investors Empowerment Literacy of Art

Women from tier-II and tier-III regions account for 65 per cent of the total Through initiatives such as WazirX Warrior program and Binance Academy, the
signups by women from all over the country. Female traders have voiced crypto exchange has been spreading financial literacy and actively engaged in
that crypto helped them achieve financial independence, raise their living knowledge dissemination and increasing awareness of the crypto market and
standards, and added a great source of secondary income for the family. do’s and don’t’s

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 CRYPTO INDUSTRY IN INDIA

60%+ States in India are Emerging as CryptoTech Adopters

States Wise Adoption of CryptoTech PoCs/ Projects CryptoTech Use Cases – Remittances, Digital Identity, Electronic Health Record
& Citizen Digital Certificates have higher probability, ease & adoption of Crypto/
Digital Currency

Preparedness & Ease of Adoption

7 Projects/
Use Cases
Land Registry Remittances
Duty Payment (Token/NFT)

# of Pilot & Live Use Cases

Digital Identity
(Token/NFT)
Public Service Delivery
Farm Insurance
(Smart Contract) Digital Health Records

Subsidy / Rationing Microfinance

(Token/NFT)
Title Registration Cybersecurity
(Smart Contract)
Adoption Preparedness Real Estate
(Token/NFT) Data
and Maturity
Management

Low Medium High 1 Projects/

Use Cases
0 to 5 Years 0 to 2 Years

30
 CRYPTO INDUSTRY IN INDIA

Crypto Use Cases in Remittances, Digital Identity/Certificates, Rationing &

Digital Health Records are Exhibiting Higher Preparedness and Adoption
Adoption of Distributed Ledger Technologies By
Government Of India

60%
Of Government Use Cases have a
The Government of India is actively looking at adoption
possibility of Crypto/DeFi Deployment of CryptoTech in solving challenges pertaining to areas.
Few notable ones are-

TRAI (Telecom Regulatory Authority of India) usage of

DeFi, Tokenization & NFT
Smart Contract/ Ethereum
Land title registry
Agriculture supply chain
Citizen Digital Health
Record
Citizen Services
CryptoTech for Unsolicited Commercial Communication
(UCC) or spam calls and messages
Digital Currency / Crypto
Ministry of Shipping proposal to digitize some of the
trade related process through implementation of Port
Community System (PCS) backed by public Blockchain
Remittances
platform such as CargoX
Duty Payments
NITI Aayog had also, through a discussion paper,
Farm Insurance
Benefit Distribution suggested the use of the distributed ledger technology
Digital Certificates for delivery of state-run services such as fertilizer
Microfinance for Self-Help subsidy disbursement and educational certificates
Counterfeit Drugs
Groups (SHG) among others
Rationing
Indian market regulator – SEBI – has asked its
Chit fund operations depositories to use distributed ledger technology,
Citizen Services popularly known as blockchain technology to record
and monitor the security created as well as monitor
covenants of non-convertible securities.

31
 CRYPTO INDUSTRY IN INDIA

POTENTIAL
BENEFITS
OF CRYPTO
INDUSTRY IN
INDIA

32
 CRYPTO INDUSTRY IN INDIA

Model Assumptions to Assess Potential Impact of CrytoTech in India

NASSCOM and UnearthInsight have conducted a series of interactions with industry participants, stakeholders, in addition to an extensive
modeling exercise to assess the potential benefits of CryptoTech in India

Growth and adoption of CryptoTech in India continue at

the current rate due to:
Base Case

• Limited to no change in policy environment, and

continued COVID-19 induced uncertainty
• CryptoTech integration in business functions and
financial sector grows at the pace slower than
required to achieve critical mass and usage across
sectors

Growth and adoption of CryptoTech in India accelerates rapidly with two-sided

growth – higher demand-pull and investments in development and maturity of

Best Case
CryptoTech led by:
• Most policy recommendations accounted for and enabled
• Conducive regulatory framework that promotes innovation and grass-root
adoption of crypto technologies
• Accelerated investment in crypto space from institutional and retail investors
• Heightened awareness of the benefits of CryptoTech leading to a favorable
outlook and reduced skepticism

33
 CRYPTO INDUSTRY IN INDIA

CryptoTech Market in India Poised to Grow 2X Faster, and Create 800k+

Jobs by 2030
Market Size Investments Job Creation

USD Bn
Figures in USD Million 15.6 Figure in ‘000’

CAGR 14.1%
241.1 10.2 877
9.7
8.0
6.6 6.6 691
123.2 336
73.8 120.8 55 303
73.8 91.3
55

2021 2025 2030 2021 2025 2030 2021 2025 2030

Best Case Base Case Base Case Best Case Best Case Base Case

Crypto Market Size (by Crypto Market Growth Crypto Market Investments Crypto Market Jobs (by
2030) USD 241 million Multiple 3.3x Growth (2021) USD 6.6 billion 2030) 877,000

34
 CRYPTO INDUSTRY IN INDIA

By 2030, Crypto Industry in India can Potentially Create an Economic

Value Addition of USD 184 billion in form of Investments and Cost Savings

1 2 3 4

Increased Reduced Job Creation Govt. Revenue

Investments Remittance Costs Contribution

USD 105 billion USD 79 billion 800K USD 137 million

in investments in cost savings Direct in taxes

employment
*By 2030 *By 2030 *By 2030 *By 2030

Source: UnearthInsight Research

35
 CRYPTO INDUSTRY IN INDIA

CryptoTech in India can Address Emerging Challenges and Bring Significant

Efficiencies in Key Priority Areas
In the post-pandemic world, new challenges have emerged and CryptoTech holds key to solve the most prominent ones

Existing Use
Cases HEALTH AND DIGITAL TRADE
REMITTANCES
and SAFETY IDENTITY FINANCE
Realized Over 38M Beneficiaries across Over 1M Students Digital 5% to 10% Cost Savings for Significant reduction
benefits Rajasthan saving $800 Million
annually reducing need for
Diploma Certificate to
help companies verify and
30M to 40M traders for over
$2.4 Trillion trade annually
in transaction time for
Remittances from 3-5 days
reprinting or rechecks of authenticate Identity in <1 to 3 seconds
medical records day

Potential benefits
of CryptoTech’s
Existing Use
Cases USD 30 billion in USD 3 billion+ in USD 5 billion+ in USD 5-6 Billion in
savings on Savings on verifications cost savings savings on
rechecks across India On Trades and Margins remittance fees
Source: UnearthInsight Research

36
 CRYPTO INDUSTRY IN INDIA

Case Study I: Health and Safety – India’s First Electronic Health Records on
Blockchain (1/2) Blockchain Impediments
• The First and Only “Digital Health Records” Use Case in
India
• 100% In-House, 100% Open with Open Standards and
Partnered to implement Blockchain Open APIs
solution in electronic health records • Fully Compliant to HIPAA and other international
standards / guidelines
Auxesis Group • Can integrate with Any Hospital Anywhere Any Day
Government of Rajasthan

4 Blockchain Interventions

01 Digital Health Records 02 Pharma Track and Trace

03 Drug Provenance
04 Physician Recertification

Benefits/ Impact ~5000

38 M ~$0.8 B Cost ~16,200 Public Hospitals Concurrent
Beneficiaries Efficiencies/ ~500 Private Hospitals Users
Savings

37
 CRYPTO INDUSTRY IN INDIA

Case Study I: Health and Safety – India’s First Electronic Health Records
on Blockchain (2/2)
Enhancing Patient Healthcare Click of Button Health Information &
Experience through Rajasthan Dashboard

38
 CRYPTO INDUSTRY IN INDIA

Case Study II: Digital Identity through Blockchain Diploma Certificate

Issuance and Verification System (1/2)
Digital Identity Diploma Certificate

Brief – Maharashtra State Board of Skill Development(MSBSD) was looking to automate student certificate
issuance and verification across 8 academic years for 1,084 training institutions approved by the board

MSBSD Students Problem Statement Impact / Benefits

High Time
Students Take Examinations and Evaluations

Co Printed Certificates sent across 35 districts s

mp anie 3 to 4 Weeks <1 Day Weeks
an mp Average Time to Issue Student Average Time to Issue
ies co
se th Certificates Student Certificates
nd
e wi
wr
itt cat
en rtifi
re
qu l Ce High Cost
es ica
tf ys
or Companies Ph
ve re
rifi Sha
ca ts
tio en
n ud
St 1122 2 to 3
Average Number of People Average Number of People
coordinated to Issue Certificate coordinated to Issue Certificate

Solution: LegitDoc a unique SaaS-based platform that leverages a combination of Ethereum blockchain and cryptographic
techniques, has facilitated issuing and verifying of around 1 million digital diploma certificates for students of MSBSD across 8
academic years. These certificates can be instantly verified from anywhere around the world.
Scale of Deployment: 1+ Million documents digitally certified and verified. Government of Maharashtra becomes only the 4th
government entity in the world to deploy blockchain-based educational document registry after full-scale implementations by 4 to 5 Weeks ~10 Seconds
Government of Malta, the Government of Singapore and the Government of Bahrain. Average Time to Verify the Average Time to Verify the
Certificate Certificate

39
 CRYPTO INDUSTRY IN INDIA

Case Study II: Digital Identity through Blockchain Diploma Certificate

Issuance and Verification System (2/2)
Digital Identity Diploma Certificate

Brief – LegitDoc makes use of Ethereum blockchain combined with modern cryptography to issue digital
diplomas that are tamper-proof, hack-proof, instantaneously verifiable and privacy-centric.

Software 1 Software 2

Issuance software is a Verification software is

standalone desktop app a WebApp hosted on the
installed at MSBSD premises MSBSD website that points
that also houses student directly to the blockchain
data in the FoxPro database. data. Any verifier with
MSBSD generates PDFs the blockchain digital file
of student certificates as (“legitdoc.zip”) can upload it to
usual. Instead of printing the verification portal for the
the same, the LegitDoc purpose of authentication.
Issuance software application
calculates the Hash(digital Verification Portal will
fingerprint) of each PDF
certificate. The hash is unique • Separate the digital
to each certificate and is certificate (PDF) from the
irreversible in nature blockchain transaction
data
To view the certificate,
students can simply open the • Calculate hash of the
Certificate PDF inside the digital certificate
“legitdoc.zip” file.
• Check the availability and
validity of certificate

40
 CRYPTO INDUSTRY IN INDIA

Case Study III: USD 2.45 Trillion India Trade Connect which is a Blockchain
Based Network for Trade Finance (1/2)
$2.4T Trade $2.4T Trade
Finance in 2020 Domestic Trade Finance Finance in 2020

Problem Statement Impact / Benefits

High Time
Banks Consortium
moves into
Production
8-9 days 2-3 days
2017 2018 2019 Average Cycle Time for Inland Average Cycle Time for Inland
Letter of Credit Letter of Credit
Seven banks meet and demo Seven banks fully
Finacle Trade Connect live on Finacle Trade
ICICI and Axis Pilot Connect High Cost

Solution – Domestic trade finance blockchain based network, enabling automation and transparency, and improving risk 15% <5%
mitigation in domestic trade and supply chain finance operations. India Trade Connect’s goal is to digitize trade finance workflows Average Inefficiencies Average Inefficiencies
within a distributed, trusted, and shared network.
Related Hidden Costs Related Hidden Costs
Framework Used – It is agnostic to which blockchain infrastructure is used (e.g., Hyperledger, Corda, Ethereum, and Bitcoin).
Workflows include validation of ownership, certification of documents, and payments. It covers a wide scope of transaction types:
1% to 2% Related to Document 0% Related to Document
purchase order, invoice, bill lodgment request, bill acceptance request, documentary credit request, documentary credit, advance Courier Fees Courier Fees
payment, bill payment transaction, customer-to-customer (both use same bank), and open account
Scale of Deployment – 7 banks have signed up for Pilot on India Trade Connect which are ICICI Bank, Axis Bank, IndusInd Bank, 5% to 10% Average Per <5% Average Per Transaction
RBL Bank, Yes Bank, Kotak Bank, South Indian Bank Transaction Cost Cost

41
 CRYPTO INDUSTRY IN INDIA

Case Study III: $2.45 Trillion India Trade Connect Which is a Blockchain
Based Network for Trade Finance (2/2)
~40M Indian $2.4T Trade
Traders Domestic Trade Finance Finance in 2020

Agile Testing
Efficient Collaboration

India Trade Connect’s success rests Fail Fast – Infosys established a

on consensus across participants, WhatsApp group and a “testnet.” The
close coordination was undertaken WhatsApp group enabled the banks
between participating banks and to quickly seek help, clarify points, and
Infosys Finacle. provide direction.

Testnet – The “testnet,” a cloud-hosted

1 Business 15 Member
1 IT environment and network, enabled the
Product Infosys
Owner Team leader banks to rapidly explore and test the
functionality.
1 from Each 1 from Each
Banks Banks • Iterative Method – Monthly releases
with the latest functionality were
refreshed into the “testnet.”
Multi-stakeholder Approach
• Feedback Loop – This enabled the
banks to see how their feedback was
Coordination between bank incorporated and to continue to test
participants and a multi-stakeholder and pilot the solution.
approach have been paramount to
optimizing functionality and satisfying • Impact – No Direct Infrastructure
information security requirements. Cost for conducting pilots

42
 CRYPTO INDUSTRY IN INDIA

Case Study IV: Remittances Pilot through Ripple Across 5 to 6 Large Banks
Reducing Time of Transaction From 3-5 Days to 3 Seconds
35M Indian Living $83B Remittances
Abroad Cross-Border Remittance in 2020

Problem Statement Impact / Benefits

High Time
Kotak Bank used use
xCurrent to power instant
remittance payments into
the country 3-5 days 3 Seconds
Average International Average international
2017 2018 2019 Payment Transaction payment transaction

Axis Bank was the first ICICI, Yes Bank,

financial institution in India IndusInd Bank and
to offer Ripple-enabled, Federal Bank Piloted
frictionless payments and Tested Ripple High Cost
experience

7% 1% to 2%
Solution – RippleNet uses xCurrent with On-Demand Liquidity (ODL), which allows them to begin sourcing liquidity on demand Average Fees on Principal Average Fees on Principal
(i.e., instant foreign exchange when they need it) with the digital asset. RippleNet solution does not use the digital asset XRP in Value Value
India considering the regulatory landscape.
Scale of Deployment – 5 to 6 banks have signed up for Pilot on RippleNet which are Axis Bank, Yes Bank, Kotak Mahindra Bank,
IndusInd Bank and Federal Bank.
Potential Impact – $5 to $6 Billion savings on remittances fees assuming a stagnant inflow of cash into the country

Source: UnearthInsight Research

43
 CRYPTO INDUSTRY IN INDIA

Crypto Industry in India– Key Impediments and Areas of Priority

Intervention
Technological Bottlenecks

01 • Awareness gap
• Limited understanding of benefits
• Inadequate supporting infrastructure

Operational Bottlenecks

02 • Demand-supply gap in crypto talent

• Lack of seamless fund movement between crypto exchanges and banking & financial
intermediaries
• Higher energy usage and concern regarding sustainability and emissions

Financial Bottlenecks

03 • Higher capex cost of crypto technologies implementation and deployment

• Cautious investor sentiment due to regulatory ambiguity

Regulatory Bottlenecks

04 • Regulatory ambiguity
• Lack of clarity on GST and applicable taxation
Source: UnearthInsight Research and NASSCOM Research

44
 CRYPTO INDUSTRY IN INDIA

Industry Quotes
Time to Proof of Concept Stage
Hovers Around ~6 Months
My belief is that we should think of Crypto as an asset class. I think Indian regulators aslo accept the
concept of central bank digital currencies (CBDC); like a digital rupee
70% Nandan Nilekani, Non-Executive Chairman

of adopters interviewed took less I have invested in Bitcoin because I believe in its potential, the capacity it has to transform global
than 6 months for PoC with global payments is very exciting.
cross border payment solution
providers because the use case is Richard Branson, Founder
fairly matured across Africa, US and
Europe.
If crypto succeeds, it’s not because it empowers people, It’s because it empowers better
Time From Pilot to Deployment
institutions
Stage Hovers Around ~6 Vitalik Buterein, Co-Founder
Months

70%
of adopters interviewed took less
than 6 months for deployment with
global cross border payment solution
providers because the use case is
fairly matured across Africa, US and
Europe.
Tracking the utilization of benefit distribution programs, birth, death and marriage certificates, municipal
authority approvals and permissions, police clearances, etc., will work in a more foolproof way with
Blockchain
Gopikrishnan Konnanath
Blockchain is useful for mobile number portability, curbing unsolicited calls, and more. It helps share data
for solving complaints and to bring in standardization and transparency across the telecom ecosystem.
Jitan Chandanani

45
 CRYPTO INDUSTRY IN INDIA

NASSCOM Recommendations
A consultative and enabling regulatory approach towards Crypto technologies can help drive the growth of Crypto ecosystem and innovation
in India

01 Proactive, Consultative Approach

India needs to act fast and work consultatively with key stakeholders in the crypto community and
provide regulatory certainty and clarity around Crypto technology (specifically around cryptocurrencies
and digital tokens).

02 Crypto Working Group or Self-Regulatory Body

A crypto working group (similar to the Dutch Blockchain Coalition) or a self regulatory body (similar to
the one in Japan) can help drive the development of regulations or standards required for the growth
of the overall ecosystem in India

03 Regulatory Sandbox
A regulatory sandbox can enable the use and adoption of specific high-potential use cases of crypto-
tech, such as financial instruments (e.g., fund raise, payments), utility tokens (e.g., authentication for
use of a resource)

04 Contemporizing Laws As Technology Neutral Frameworks

Amendments to existing laws on electronic authentication, records and contracts on the principle of
technology neutrality. The UNCITRAL Model Law on Electronic Transferable Instruments is a useful
reference point for India to consider
46
 CRYPTO INDUSTRY IN INDIA

Appendix
Case Studies

Change Healthcare’s
Tokenization Case
Intelligent Healthcare
Colombia’s Study: Austria’s virtual
Network (IHN) for
Blockchain-based citizen card - “Identity
Transparent Healthcare
e-Procurement to Link”
Colombia’s Digital Transaction in USA Moscow’s Blockchain-
reduce corruption Democracy for based Smart City
Inclusive Electoral Project
Process

Non-Fungible Tokens State-wide adoption Examples of

(NFT) Case Study: of CryptoTech in Regulatory
The World’s First Real India Governance of
Estate NFT located in CryptoTech Globally
Kyiv, Ukraine

47
 CRYPTO INDUSTRY IN INDIA

Colombia’s Blockchain-based e-Procurement to reduce corruption

COLOMBIA

GOVERNMENT
TRANSPARENCY
Reduced Corruption
CHALLENGE/PAIN POINT BLOCKCHAIN SOLUTION IMPACT

$9.5 Trillion Spent by Governments on on
Every year, governments spend procurement contracts
between 10% and 30% of national GDP
on procurement
10%–30% of a public contract’s overall value
is commonly lost to corruption (OECD)
Transparency Project is first Blockchain for procurement of the 80% PAE vendors are selected via
Colombian PAE public-school meal programme e-procurement system
Capabilities of Software Solution 100% student meal programme procurement
1) Permanent and tamper-evident record-keeping transactions closed virtually

2) Real-time procedural transparency and auditability

Blockchain-based 60% times money is diverted to the pockets Permanent and irrefutable records (of
3) Automated functionalities with “smart contracts”
e-Procurement of corrupt government officials and other public comments, tender offer and bidding
participants 4) Reduced reliance on the discretionary decision-making documents and their “hashed” timestamped
of centralized parties and authorities records, tenderer scoring and evaluation
decisions, etc.)
5) Enhanced citizen engagement

48
 CRYPTO INDUSTRY IN INDIA

Colombia’s Blockchain-based e-Procurement to reduce corruption

01 02 03 04 05
REGISTRATION TENDER OFFER OPEN FEEDBACK FINAL OFFER PROVISIONS

Vendor Initial Public Final Tender Provision for

Registration Tender Offer Comment Offer tender withdrawal,
Published Period Published cancellation, restart

START

10 09 08 07 06
PHASE 2 + PUBLIC
PHASE 1 + PUBLIC
COMMENTS AUTO DOWNLOADS BID END BID START
COMMENTS
Phase 2 Tenderer downloads
Phase 1 Tender Bidding period Bidding period
Tender bids of registered
Winner Evaluation closes begins
Declared Evaluation vendors
END

Source: UnearthInsight Research and NASSCOM Research

49
 CRYPTO INDUSTRY IN INDIA

Colombia’s Digital Democracy for Inclusive Electoral Process

COLOMBIA

DIGITAL
DEMOCRACY
Inclusive Electoral
Processes CHALLENGE/PAIN POINT BLOCKCHAIN SOLUTION IMPACT

90% of the 6 million Colombians living abroad
10% Colombians living abroad
Registered to vote in consulate or
embassy
Blockchain-based
Voting
had not registered to vote in consulate or
embassy
Trusted Platform for foreign-based
Colombians a voice and to challenge the
traditional electoral system
80% to 90% additional costs incurred to
campaign outside Colombia
Digital Plebiscite was launched as the digital voting platform by
non-profit Democracy Earth Foundation
Digital Plebiscite was powered by blockchain technology,
testing a new way of validating and authenticating electoral
votes
Worked with several civil society organisations to allow
Colombians abroad to cast symbolic votes through the platform
Digital Literacy – 23.2 million Colombians,
nearly half of the total population, are still
offline
Regulatory barriers regarding “data as
jurisdiction”
Cultural resistance in public organisations
Lack of sufficient maturity of Voting
Blockchain Technology

50
 CRYPTO INDUSTRY IN INDIA

Change Healthcare’s Intelligent Healthcare Network (IHN) is disrupting

RCM, claim management, and clinical information exchange solutions in
US
UNITED STATES – CHANGE
HEALTHCARE

TRANSPARENT
HEALTHCARE
TRANSACTION
CHALLENGE/PAIN POINT BLOCKCHAIN SOLUTION IMPACT
~15% Cost Reduction in Claim
4.6 million claims submitted per day Intelligent Healthcare Network (IHN) is $1 Trillion in claims processed
Processing & Administrative Costs. first enterprise-scale Blockchain solution for
US Spends $315 Billion for Billing, healthcare
Insurance Related Inefficiencies 15%–20% of healthcare spending and 50 million transactions per day (claim events
processing costs are associated with Billing per day)
and Insurance (BIR) related activities IHN provides efficiency to optimize
Blockchain- administrative cost, time, and transparency for
better auditability & traceability related to claims <1 Day insurance eligibility check (7 to 14
powered Intelligent $315 billion BIR costs in 2018/19 days traditional insurance eligibility check)
adjudication process
Healthcare Network

51
 CRYPTO INDUSTRY IN INDIA

IHN solution is aimed at simplifying manual administrative interactions

between payers and providers

52
 CRYPTO INDUSTRY IN INDIA

Moscow’s Blockchain-based citizen engagement for trust, transparency

and collaboration between citizens and government
MOSCOW, RUSSIA

SMART CITY
MOSCOW

$10M annual savings from eHealthcare

CHALLENGE/PAIN POINT BLOCKCHAIN SOLUTION IMPACT
system
8 million i.e., 65% of Moscow’s Citizens use Mos.ru Smart City Moscow’s digital platform offering 2 Billion times used for 370 public services by
13% average increase in travel speed the city’s website 370 public services 12 million inhabitants
since 2013

Blockchain-based
Hyperconnected
digital platform
52% of Smart Cities project biggest obstacle is
gaining the support of citizens
75% of Lower Income Citizens believe smart
initiatives as more beneficial for the
Rich
Long time for permits and approvals for
businesses
Active Citizens – Aallows citizens to vote on city issues 4.8 million registered users offered Active
Citizen 4,800 polls conducted & 1,500 cases
citizen decisions implemented
Crowd – Citizens a discussion board to propose ideas
and make suggestions on improving community projects
13% average increase in travel speed since
2013
Moscow Online School – Connects Schools, Parents &
Citizens
$10M annual savings from eHealthcare

53
 CRYPTO INDUSTRY IN INDIA

Moscow’s Blockchain-based citizen engagement for trust, transparency

and collaboration between citizens and government
INTELLECTUAL TRANSPORT SYSTEM
01
Intelligent Transport System – 1,900 cameras, 3,600 speed, sensors, depersonalized geo data from mobile
operators and 2,500 smart traffic lights. Transport routes are optimized based on data obtained by using
GPS and GLONASS sensors that tracks their efficiency and speed.

CITIZEN ENGAGEMENT
02
• Active Citizen: 1.9m users, 1709 initiatives already implemented
• Our City: 1m users, 2m problems successfully resolved
• crowd.mos.ru: 15 projects implemented, 140,000 users, 2,700 ideas selected for further elaboration

EDUCATION ON BLOCKCHAIN
03 Moscow Online School –Integrated 980,000+ connected pupils, 65,000, connected teachers, 773
connected schools. online school diary and registry with Wi-Fi in each classroom resulted in 15% growth
of academic performance

HEALTHCARE ON BLOCKCHAIN
IMIAS – Integrated medical information analytical system: 9m connected patients, 22,000 connected
04 physicians, 660 connected clinics and labs

SMART CITY STARTED IN 2011

Mayor Sergey Sobyanin took office and the overall city development strategy with automation of all city
05 functions

54
 CRYPTO INDUSTRY IN INDIA

Tokenization Case Study: Austria’s virtual citizen card - “Identity Link”

AUSTRIA DIGITAL ID
ECOSYSTEM

DIGITAL CITIZEN
CARD AND
MOBILE ID
CHALLENGE/PAIN POINT BLOCKCHAIN SOLUTION IMPACT
1.5 Million Mobile e-IDs active
First European country to implement a Identity Link is Virtual Citizen Data Card “SourcePIN”—a 300+ Public Services like tax portal, social and
users national ID system based on an electronic unique identifier created by strong encryption of the health security portal, pensions and several
18% Adoption Rate (8.8M ID, strongly embedded in the e-government 12-digit unique ID (CRR) number. private services for 8.8 population
population) initiative

Tokenized Virtual 30% delayed Citizen data and Services
because corporates work with 26 Austrian
Citizen Card
public administration departments
20% Data Errors reducing inter-department
efficiencies
ssPIN – Created from the SourcePIN using one-way 1.6 million registered users of SMARTCARD
derivation, a method through which a sector specific-PIN (Health Insurance Card)
is algorithmically computed from the SourcePIN.
25% Reduction of Public Sector Services
Mobile ID is free for citizens and for public & private Budget
service providers
Acceptance of countries’ e-ID since 2008 and
e-IDAS notification planned for 2021

55

Tokenization Case Study: Austria’s virtual citizen card - “Identity Link”
TOKENS IN AUSTRIA’S VIRTUAL
CITIZEN CARD
• The Austrian public administration is
divided into 26 sectors, including tax, health,
education, etc.
• To safeguard user privacy, the eGovernment
Act stipulates that different identifiers be
used for each sector data system that a user
accesses. A sector-specific personal identifier
(ssPIN) is created from the
• SourcePIN using one-way derivation, a
method through which a sector specific-PIN is
algorithmically computed from the SourcePIN
• The SourcePIN Register Authority sends the
desired ssPIN to the authority that requested
it in encrypted form, and the ssPIN can only
be decrypted by the public authority that is
responsible for the other procedural sector.
56
CRYPTO INDUSTRY IN INDIA
CITIZEN CARD ELEMENTS
• The Central Register of Residents (CRR) is
a national information system that contains
data about every resident of Austria (citizen
and non-citizen alike). Austria mandates that
all residents register their presence in the
country, and the CRR contains the records
of all these registrations. Each data record in
the CRR has a unique identifier—a 12-digit
CRR number, resident’s full name, sex, date of
birth, citizenship, and full address. Records of
foreigners additionally contain passport data.
• Identity Link and consists of full name, date
of birth, the source PIN (as unique identifier
created by strong encryption of the CRR
number), and the cryptographic keys required
for e-signature and encryption.

Non-Fungible Tokens (NFT) Case Study: The World’s First Real Estate NFT
located in Kyiv, Ukraine
FIRST PROPERTY TO BE
SOLD USING BLOCKCHAIN
TECHNOLOGY
NFT IN REAL
ESTATE
Smart Contract on the Ethereum
Blockchain using NFT
$93,000 Auctioned in Ether
Apartment
converted to Non-
Fungible Token (NFT)
57
CHALLENGE/PAIN POINT
First property to be sold using blockchain
technology back in 2017, was owned by
Michael Arrington, founder of TechCrunch
and Arrington XRP Capital.
Currency – Contract was made between the
relevant parties with Ether (the currency used
on the Ethereum blockchain) being used to
make the purchase.
CRYPTO INDUSTRY IN INDIA
BLOCKCHAIN SOLUTION IMPACT
Propy facilitated the purchase through blockchain $1 Billion transactions via their easy-to-use
technology and apartment was tokenized as an NFT and secure online platform
Transaction – The ownership of the property was 20% Reduction or $1.7B in annual savings for
actually held and recorded in Ukraine as a US LLC. The US mortgage loan industry due to adoption of
auction winner became the owner of the NFT that gives blockchain technology
the rights to the LLC, with Arrington signing proprietary-
developed legal papers for NFTs to transfer ownership to
all future buyers.
 CRYPTO INDUSTRY IN INDIA

Indian States Are Moving From Pilot To Live Deployment of CryptoTech In

Areas Such As Digital Certification To Rationing Distribution (1/2)
STATE BLOCKCHAIN USE-CASES COLLABORATIONS / PARTNERS (Illustrative & not all)

• Land Registration
• Duty Payment
West Bengal • Record Management Lynked – The municipal corporations of Bankura and Durgapur districts in West Bengal have partnered with the Netherlands-based company Lynked.
Pilot • Cybersecurity World to build a blockchain-based platform for issuing legal documents such as birth certificates.
• Digital Birth Certificate
• Data Management
• Agriculture
• Digital Certificate
Karnataka • Forest and Land Acquisition PwC – Karnataka government in collaboration with PwC has announced the creation of a database or a marketplace for intellectual property rights
using block chain technology and also for preparation of digital certificates, public service delivery systems, and forest and land acquisition record
Pilot • Public Services Delivery maintenance.
• Idea Marketplaces
• IP Protection
Gujarat • Fertilizer Subsidy Management
Zebpay – Gujarat Government collaborated with Zebpay to explore blockchain technology applications in the state.
Pilot • e-Governance
• Blockchain Database
• Cybersecurity
Andhra Pradesh Zebi – The government of Andhra Pradesh is working with Zebi data for blockchain-based solutions in land registry. The government is also partner-
• Healthcare
Live ing with Hitachi to set up an online citizen governance platform.
• Land Registry
• Vehicle Title Registration
• Land Registration LegitDoc – Maharashtra government partnered with LegitDoc to issue tamper-proof diploma certificates as an intent on part of the authorities to
• Digital Certification tackle such misuse of technology.
Maharashtra
• Organ Transplant Polygon Network – Maharashtra government partnered with Polygon Network to track the results of RT-PCR tests.
Live
• Rationing Distribution Swiss Government – The Maharashtra government has signed a MoU to share and implement ideas on block chain technology and its application with
• Farm Insurance the Swiss government.

58
 CRYPTO INDUSTRY IN INDIA

Indian States Are Moving From Pilot To Live Deployment Of CryptoTech

In Areas Such As Digital Certification To Rationing Distribution (2/2)

STATE BLOCKCHAIN USE-CASES COLLABORATIONS / PARTNERS (Illustrative & not all)

Power Ledge – Uttar Pradesh is the first States in India to launch blockchain-enabled solar power trading. The pilot project (to be undertaken on few
Uttar Pradesh
• Power Sharing government buildings in Lucknow) will test the feasibility of energy trading through blockchain from rooftops with solar power to neighboring house-
Live
• Land Registry holds and buildings.
UNDC – Uttar Pradesh government has partnered with UNDC to implement a Blockchain solution in land title management
• Digital Public Services – Nambikkai Centre of Excellence (CoE) – Established CoE in Tamil Nadu e-Governance Department. Tamil Nadu has adopted Blockchain-as-a Service model,
Inaiyam (NI) wherein the departments will not have separate nodes.
Tamil Nadu • Agriculture IIT Chennai – The Tamil Nadu government has signed a MoU with IIT Chennai to explore Blockchain applicability in different use cases.
Live
• Healthcare Trust Link – State-wide blockchain infrastructure that can be leveraged by all Government departments, which is named Nambikkai Inaiyam (NI)
• Education which roughly translates to ‘Trust Link’
Kerala Blockchain Academy (KBA) – State established the Kerala Blockchain Academy (KBA) to explore the capacity of the technology to promote
Kerala • Farm Insurance Research, Development and Entrepreneurship.
Live • Agriculture Supply Chain Next five years, the State plans to make its financial system more efficient and implement pilot government schemes by creating a talent pool of pro-
fessionals in the area of blockchain
Auxesis – The Rajasthan government has partnered with Mumbai-based Auxesis group to implement a Blockchain solution in electronic health re-
• Land Registry cords and land registration.
Rajasthan
Live • Electronic Health records Electronic Health records (EHR) – State has already successfully launched EHR (Electronic Health Record) using blockchain technology.
(EHR)
Land Registry – Implementation of blockchain for land records which will help create an immutable digital record of transactions.
• Land Registry Tech Mahindra – Besides having developed a Blockchain District near Hyderabad, the Telangana government has signed a MoU with Tech Mahindra
Telangana • Chit Funds Operations and is collaborating with IIIT Hyderabad and C-DAC to build a state-level Blockchain platform. It is also collaborating with NITI Aayog for blockchain
Live • Microfinance for SHGs in governance.
• Digital Education Certificate Accelerator – Launched a blockchain accelerator in its recently created Blockchain District, in collaboration with Tech Mahindra.

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Examples of Regulatory Governance of CryptoTech Globally

COUNTRY LEGISLATION DETAILS (Illustrative & not all)

The Distributed Ledger Technology Law, Cyprus has proposed a bill governing smart contracts and cryptocurrencies as assets. The objective of the bill is to facilitate the application of distrib-
Cyprus
2021 (Bill, open for public consultation) uted ledger technology, and to safeguard consumer rights as well as avoid money laundering. The bill is open for public consultation.

Singapore Payment Services Act, 2020 The Payment Services Act lays down a framework for licensing and compliance for cryptocurrency businesses in Singapore.

The Monetary Authority of Singapore (MAS) regulates the public offerings and issue of digital coins. MAS ascertains if digital tokens are capital mar-
ket products, and such products are thereafter governed by Securities & Futures Act.
Singapore Securities and Futures Act, 2001
Additional Resource: A Guide to Digital Token Offerings, Monetary Authority of Singapore < https://www.mas.gov.sg/-/media/MAS/Sectors/Guid-
ance/Guide-to-Digital-Token-Offerings-26-May-2020.pdf >

General Policy for Future Trading of All entities dealing with crypto assets as commodity futures in Indonesia must comply with anti-money laundering/ combating of financing of terror-
Crypto Asset, 2018 (MoT Reg 99/2018) ism (AML/CFT) norms. Such entities must report to the Indonesian Financial Transaction Reports & Analysis Center.
Indonesia
& Technical Regulations (BAPPEBTI Reg
5/2019)  

• Virtual Financial Assets Act, 2018
• Malta Digital Innovation Authority
Malta Act, 2018
• The Innovative Technology Arrange-
ments and Services Act, 2018
The Virtual Financial Assets Act regulates issuers and service providers, and initial virtual financial asset offerings. They need to comply with certain
requirements and register themselves with the authority which ensures that they are in compliance with anti-money laundering laws etc.
 The Malta Digital Innovation Authority (MDIA) Act establishes the Digital Innovation Authority. The Act empowers the MDIA to certify innovative
technology arrangements of a platform.
 The Innovative Technology Arrangements and Services Act (ITAS) lays down the framework for certification of innovative technology arrangements.
Note: The financial regulator, Malta Financial Services Authority, has also launched a Fintech Hub and Sandbox Environment. The objective of this
Sandbox is to help in orderly adoption of innovative technologies in the financial services market.

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Acknowledgements
This report has been developed through a comprehensive study to understand the Crypto
landscape in India.
The preparation of this report has been facilitated by extensive research and interactions
with 25+ respondents across the crypto ecosystem who have extended great help to the
research team. We wish to sincerely thank all of them for their valuable contributions
without which this report would not have been possible.

About the Authors:

NASSCOM Team:

• Achyuta Ghosh, Head of Research – NASSCOM Insights

• Aniket Sudhanshu, Senior Analyst – NASSCOM Insights

Unearth Insights Team:

• Gaurav Vasu, Founder and CEO

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