How 2022 has gone for these sectors and what the industry is saying about the coming year and the expectations for it
Leon Foong, Head of APAC, Binance
“Web3 and crypto, while still in their infancy, have taken the world by storm and investors around the world are realizing how many opportunities it presents. 2022 has been a big year for the Web3 and crypto space, with new projects and protocols launched while existing ones continue to grow and evolve. The Ethereum upgrade was one of the most important developments in the crypto industry, making the blockchain more scalable, secure and sustainable and paving the way for building more efficient decentralized applications. Transparency in this industry has become a major area of focus, and blockchain technologies such as merkle-sum trees and ZK-SNARKs are being used to build proof of reserves that we hope will increase confidence in the digital asset space.”
“In 2023, we expect to see the continued development of Web3 infrastructure with continued attention to investor education and awareness. To build a robust Web3 infrastructure, security is very important, and Binance plans to continue with initiatives such as the Global Law Enforcement Training Program, reveal Binance’s hot and cold wallet addresses through Proof of Reserves, and establishing the Industry Recovery Initiative (IRI) to protect consumers and rebuild the industry.”
Pratik Gauri, Co-Founder and CEO, 5ire.
“Just as humans have solved many problems with innovation, so will we with sustainable development. The crypto winter of 2022 has kept everyone tame, but it was also the year that one of the largest blockchain networks, Ethereum, switched from the Proof of Work consensus algorithm to the Proof of Stake consensus algorithm, cutting their power consumption by 99%. Web3 also took giant strides to become a usable technology for the future. There is enough excitement for 2023 to innovate our way out of the environmental crisis we are facing.
The sustainability crisis is existential and needs a new type of digital product that is co-owned, co-created and co-operated. This constitutes the internet’s third era and is defined by decentralization, failing trust in institutions, and a new way of looking at value creation and value capture. Blockchain technology will be the defining aspect of Web 3.0.
When empowered with such autonomy, people will cooperate with government, allowing citizens and organizations to play a meaningful role in shaping a future where profit and purpose go hand in hand. It is our definition of the 5th industrial revolution where we transform from profit to purpose.“
Raj Karkara, COO, ZebPay
“In 2022, the crypto industry witnessed landmark events including the Ethereum Merge Upgrade, the launch of the Central Bank Digital Currency (CBDC) as well as the Government of India’s new crypto tax policy. While market fluctuations and adverse tax implications have affected overall trading volumes and sentiment, investor education has helped increase the adoption of crypto and will continue to be a priority Also, for any new asset class in its infancy, a fair amount of volatility can be expected.
In 2023, it will be the responsibility of all players in the crypto and Web3 ecosystem to create a sense of security among consumers. Putting the right protocols and practices in place to avoid the impact of Black Swan events will be critical to success. Those businesses that operate with transparency, strong ethics and values, while protecting consumers’ interests, will succeed. The year will weed out businesses with weaker models and practices. Sustainability and financial inclusion will be strong themes, promoting mass adoption of the asset class.
A key item on the wish list of all Web3 and blockchain players this year would be a favorable regulatory framework that would protect investors while encouraging innovation to create new avenues to transform business across the spectrum, allowing all industry stakeholders to thrive. We hope India’s G20 presidency will help establish an innovative regulatory framework based on new technologies and will help create a favorable environment for the crypto industry.
Ranjan R Reddy, Founder and Managing Director 0f Bureau
“2022 was filled with news about crypto meltdowns, synthetic ID scams, phishing, scam rings, UPI scams, money laundering, collusion, OTP theft and referral abuse, to name a few. Cyber fraud has exploded as attackers constantly evolve their techniques for maximum benefit, leading to financial and reputational loss for companies across industries.
By 2023, companies must look beyond traditional approaches and opt for digital-first technologies that combine AI, machine learning, behavioral biometrics and device intelligence. It will also be crucial for all stakeholders to collaborate and create a data infrastructure for privacy. In the wake of increasing data leaks and alarming incidents of identity theft, the main focus for organizations across sectors will be to ensure trust and security by creating an underlying risk infrastructure that will help protect user data, simplify the user journey by creating a secure, transparent and frictionless experience across sectors. This will further pave the way for innovation and scalability.”
Dilip Modi, founder of Spice Money
“India has come a long way in its digital journey with over 70% of the total population living in rural areas now accessing banking and financial services with the help of more than 30 lakh rural banking locations across the country. 2022 has seen some successful and notable initiatives taken by the government including 123 Pay, and launch of 75 Digital Banking Units (DBUs) in 75 districts.These initiatives address the under-penetration of banking and financial services, lack of financial literacy and awareness and employment opportunities prevailing in Bharat.Other initiatives which ONDC is democratizing e-commerce in India and shaping the future of global e-commerce.
2023 is going to be a transformative year for the rural fintech ecosystem. For the Indian economy to grow, the rural segment needs to grow and with the pool of opportunities provided by technology and internet penetration, it will also take India towards the dream of a $5 trillion economy size by the turn of this decade or earlier. As we move into 2023, rural fintech is bound to grow by leaps and bounds, some features that will continue to be important to the rural population are customization, sachetisation and assisted travel for banking and payment services. 2023 will pave the way for a rural fintech revolution that will focus on cashless transactions, embedded finance and open banking for hyper-personalization, leading to increased digital adoption and thus driving financial inclusion in the last mile”.
