Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
- Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
- Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
- Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below:
Detailed Explanation:
Statement 1 — Correct. Tokenization = converting ownership of real assets (real estate, gold, bonds) into digital tokens on blockchain. Each token = a small share of that asset.
Statement 2 — Correct. Unlike traditional markets (fixed hours, location limits), tokenized assets can be traded 24x7, globally, instantly. Also, expensive assets get divided into small affordable pieces — letting ordinary people invest too. This is financial inclusion.
Statement 3 — Correct. In India, this opens up high-growth sectors (real estate, infrastructure, farmland) to common investors. Bodies like IFSCA (GIFT City) are already approving such platforms.
All three statements simply describe different benefits of the same concept — no contradictions.
Memory Trick: Tokenization = "Slicing a big cake (asset) into small pieces (tokens)" so everyone can have a bite, anytime, anywhere.
Question 1 of 13 Digital Banking and Payment Systems
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