Background

The world of finance is undergoing a significant transformation with the rise of Decentralised Finance (DeFi) and its convergence with Centralised Finance (CeFi). DeFi represents a paradigm shift in the way financial services are accessed, utilising blockchain technology and smart contracts to create a progressively decentralised ecosystem.

This research report aims to provide a comprehensive understanding of the convergence of CeFi and DeFi, its impact on the financial landscape in India, and the regulatory challenges and opportunities associated with this convergence.

Research Objectives

The objectives of this research report are as follows:

• Define and explore the key characteristics of DeFi
• Analyse the technological underpinnings of DeFi, including blockchain and smart contracts
• Examine the global growth of DeFi and its inception in the Indian market
• Conduct a comparative analysis of CeFi and DeFi
• Assess the potential for convergence between CeFi and DeFi, highlighting opportunities and challenges
• Present case studies or examples of convergence both globally and in India
• Evaluate the impact of this convergence on traditional financial institutions and systems
• Provide an overview of current regulations affecting DeFi and CeFi in India
• Discuss the challenges in regulating DeFi
• Offer international regulatory perspectives and lessons for India
• Propose regulatory frameworks or reforms to address the convergence
• Analyse market adoption trends in India for CeFi and DeFi
• Explore the impact of this convergence on financial inclusion and economic growth
• Assess the risks associated with CeFi and DeFi and suggest mitigation strategies
• Forecast the growth and development of CeFi and DeFi in India
• Provide recommendations for stakeholders, including government, investors, and financial institutions
• Identify potential areas for innovation and investment in the evolving financial landscape.