WEB 3.0 AND BHARAT'S FINANCIAL EVOLUTION: REGULATING DECENTRALIZED FINANCE FOR A DEVELOPED INDIA

Abstract

The advent of Web 3.0, characterized by decentralized technologies such as blockchain, smart contracts, and decentralized finance (DeFi), is reshaping the global financial ecosystem. India, or Bharat, as it progresses towards becoming a developed economy, stands at a crossroads in its financial evolution. DeFi promises transparency, efficiency, and inclusivity, potentially offering solutions to longstanding issues in India's traditional financial infrastructure, such as limited access to banking services and inefficiencies in cross-border transactions. However, the decentralized nature of Web 3.0 also presents challenges, particularly regarding regulatory oversight, consumer protection, and financial stability. The need for a robust regulatory framework is critical to balance innovation with security. This abstract explores the potential of DeFi to accelerate India's financial inclusion goals while emphasizing the importance of regulatory policies to mitigate risks such as fraud, money laundering, and volatility. By analysing global case studies, existing Indian policies, and the trajectory of Bharat's financial sector, this paper aims to provide insights into how regulators can craft a forward-looking framework for DeFi. The goal is to support innovation while ensuring that India's financial evolution through Web 3.0 is sustainable, secure, and inclusive for all citizens, contributing to its vision of becoming a developed economy.