UPSC CSE Prelims
Question 96
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 24×7 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:
View correct answer and explanation
Correct answer: A
Correct Option: A
Explanation: Real-world asset tokenisation represents rights or interests in physical/financial assets as blockchain-based tokens, potentially lowering access barriers.
Statement-wise Analysis:
Statement 1: Correct - Tokenisation can represent ownership or claims relating to tangible real-world assets on a distributed ledger.
Statement 2: Correct - Digital token markets may offer around-the-clock transfers/participation where regulation and trading systems permit.
Statement 3: Correct - Fractional interests may widen access to otherwise expensive investment assets for eligible Indian investors.
Option-wise Analysis:
A: Correct - This option includes the supported item(s) and excludes the unsupported ones.
B: Incorrect - Omits supported item(s) 1.
C: Incorrect - Omits supported item(s) 3.
D: Incorrect - Omits supported item(s) 2.
Review note: Claims of 24×7 liquidity or access to “high growth” assets are contingent on market infrastructure, regulation and investor eligibility, not guaranteed benefits.