[Exclusive] Tim Draper urges India to adopt blockchain and crypto for open, transparent governance

Tim Draper, the American venture capital investor and founder of Draper Fisher Jurvetson (DFJ), said he wants to see blockchain and Web3 technology improve the Indian government’s processes and efficiency.

The Silicon Valley investor, who has been a big proponent of decentralized technology, said The Decryption History exclusively:

“I’m looking for more gov-tech Web3 startups that can help governments, especially in India, move to a more open and transparent system. With Web3, authorities can move away from slow and bureaucratic systems.”

Over the past decade, Draper has taken significant bets on Web3 startups. Draper Dragonthe investment arm that connects Silicon Valley with Asian startups has funded the likes of Ledger, VeChain, IOTEX, CoinDCX, Coinbase, CropBytes and many other blockchain projects.

More recently have Drape around table was launched, seeking to act as a decentralized platform for family offices, corporate venture capitalists, angel investors and others to invest in high-quality Web3 startups.

Open up the economy

During his time in India, Draper met several Indian blockchain startups across sectors.

He stressed that he particularly wants to see existing government models disrupted by blockchain and opened up to global opportunities, thereby providing easier access to capital, healthcare and infrastructure to solve local problems.

For example, some industry experts consider connecting crypto capital to SME markets a useful application of blockchain technology.

In 2021, serial crypto investor and earlier Coinbase CTO Balaji Srinivasan wrote in a blog that India should encourage foreign crypto investors to fund Indian businesses.

By connecting Indian MSMEs to cryptolenders, a small business owner should theoretically be able to receive funds from around the world as easily as they can make digital payments and exchange information domestically, he argued.

While such a private-public sector collaboration may be possible, Draper lamented the fact that no prominent Indian startup has “really gone for it”.

“In India, Web3 startups pay a lot of attention to the government, but they are more concerned about regulations,” he said.

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Bitcoin and open governance

Draper is a big believer in Bitcoin (BTC).

In 2014, he received widespread publicity for spending $19 million to buy 30,000 seized BTC from the Silk Road. He has also predicted that the price of one Bitcoin will reach $250,000 in the coming months.

According to Draper, decentralized currency such as Bitcoin can provide better governance in countries.

“Bitcoin has kept perfect records. In India, there is a big opportunity to move to a decentralized currency and a more open system of governance,” he said.

“The good actors in government realize that blockchain can help the economy grow faster. Those who oppose it may have something to hide.”