Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?
- 1.Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
- 2.Tokenization of real world assets offers 24 × 7 access, promoting financial inclusion.
- 3.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 :
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Answer: A. Statement 1 is correct: tokenisation turns real assets (property, bonds, art) into digital tokens on a blockchain. Statement 2 is correct: tokens can be traded around the clock and in small fractions, widening access. Statement 3 is correct: fractional ownership lets ordinary investors reach high-value opportunities. So 1, 2 and 3.
Watch for: Students suspect statement 3 is too optimistic for India's regulated markets.
Why the other options are wrong
- B. Wrong because statement 1, the basic definition, is correct.
- C. Wrong because statement 3 is also correct.
- D. Wrong because statement 2 is also correct.
Source to check: SEBI consultation papers and RBI reports on tokenisation; IFSCA (ifsca.gov.in) consultation paper on tokenisation of real-world assets
Answer from the provisional UPSC key; it may change when the final key is out. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.