"I firmly believe in building in India,” says Mudrex's Rohit Goyal at BUIDL for Web3 in Bengaluru | Interview
Rohit Goyal, Co-founder of Mudrex & Jediswap, discusses the transformative potential of DeFi in shaping a more inclusive and equitable financial system, addressing inflation, regulations, and promoting long-term thinking in the crypto market.
Rohit Goyal, Co-Founder, Mudrex & JediSwap
Highlights
- DeFi empowers individuals to achieve financial independence by decoupling from centralised authorities
- Governments and regulators need to play a role in ensuring responsible innovation and safeguarding consumer interests
- Education is paramount in fostering long-term thinking and promoting widespread adoption of DeFi in India
Amidst the buzz surrounding the transformative potential of Web3, the BUIDL for Web3 event held in Bengaluru on Monday, 4 December 2023, brought together industry leaders and enthusiasts to delve into the intricacies of decentralised finance (DeFi), Distributed ledger technology (DLT), Non-fungible tokens (NFTs), Decentralised autonomous organisations (DAOs), the metaverse, and Web3 gaming.
Rohit Goyal, Co-Founder of Mudrex & Jediswap, prominent players in the decentralised financial (DeFi) space, led an insightful conversation with Web3Cafe where the discussion explored the transformative potential of DeFi in shaping a more inclusive and equitable financial system.
Addressing economic challenges through DeFi
Goyal highlighted DeFi's remarkable potential in tackling the economic challenges faced by countries. For example Argentina, where inflation rates have spiralled to a staggering 100 percent annually. He emphasised DeFi's role in empowering individuals to achieve financial independence by decoupling from centralised authorities. Bitcoin, for instance, serves as an alternative global currency, offering a hedge against rampant inflation.
With DeFi, you are not confined to the boundaries of a particular nation. Everyone can access Ethereum, Bitcoin, or even USD-backed stablecoins. Perhaps in the future, we will have an INR-based stablecoin, providing even greater accessibility. So, DeFi grants you access to a wider range of options, allowing you to choose what best suits your needs.
He drew attention to the limitations faced by individuals in certain geographies, such as Argentina, where accessing traditional financial services can be challenging. DeFi opens doors to a range of options, including stablecoins like USD, Ethereum, and Bitcoin, providing individuals with greater control over their finances.
Navigating the role of governments and regulations
The conversation then delved into the role of governments and regulatory bodies in ensuring responsible innovation and safeguarding consumer interests in emerging technologies like blockchain and web3. Goyal acknowledged the need for regulations where decisions impacting end-users are involved, citing examples like centralised exchanges where user funds are entrusted to specific entities.
The unique aspect of DeFi is that there are elements where no single entity holds power. When no one has control, it becomes challenging to pinpoint responsibility. Conversely, there are instances where certain entities do wield power. For example, in a centralized exchange scenario, some individuals possess authority. When you deposit your funds with a company that has stakeholders, regulations become essential.
The decentralised nature of certain technologies like Ethereum demands a nuanced approach to regulation. In such instances, where centralised control is absent, traditional regulatory frameworks may not be directly applicable.
Aligning technological progress with human values
When asked about aligning technological progress with human values, Goyal proposed a framework similar to traditional banking regulations. He emphasised the need for clear guidelines that ensure entities holding customer funds adhere to ethical practices and prevent misuse or unauthorised investments.
Championing long-term thinking in crypto
Shifting gears, the conversation touched upon the crypto market's resurgence, with Goyal cautioning against an overemphasis on short-term price fluctuations. He stressed the importance of educating users about the underlying technology's value proposition, encouraging a long-term investment mindset.
"Education is paramount in fostering long-term thinking," Goyal emphasised. He suggested shifting the focus from day-to-day price movements to understanding the transformative potential of DeFi in reshaping the financial landscape.
Addressing crypto adoption in India
Addressing the challenge of crypto adoption in India, Goyal emphasised the need for simplified education, breaking down complex concepts into easy-to-understand terms. He also advocated for promoting a shift towards long-term thinking, suggesting the creation of investment products that align with users' financial goals.
Leveraging India's potential
In response to questions about the potential shift to foreign markets due to regulatory challenges in India, Goyal expressed,
I firmly believe in building in India. Why would I venture elsewhere? We possess the finest talent, and I am confident that we are not lagging in any way. While the Indian government may not be performing flawlessly, it is certainly not doing the worst job either. If we can effectively demonstrate to our leaders how DeFi can revolutionise India's trajectory and propel it to the top of the global rankings, they will undoubtedly lend their support. Moreover, we have access to the best talent, and I would rather nurture it here than seek it elsewhere.
He emphasised leveraging India's talented workforce and encouraged an open-market approach, letting competition drive innovation.
Making crypto accessible to the masses
Regarding the affordability of cryptocurrencies for the middle class in India, Goyal clarified that understanding the divisible nature of assets like Bitcoin is crucial. He urged educating the population that one doesn't need to invest in whole units but can start with small amounts, making crypto more accessible to a broader audience.
A commitment to building India's crypto ecosystem
Goyal expressed a firm commitment to building and growing the crypto ecosystem in India, underscoring the nation's immense potential and the role of education in fostering widespread adoption.
The interview provided valuable insights into the challenges and opportunities shaping the future of decentralised finance and cryptocurrency in India. As DeFi continues to evolve, its transformative impact on financial inclusion and global economic equity is poised to grow ever more significant.
