We’re living in exciting times for crypto in India. We’re seeing several billions of dollars of daily trade volumes, a burst in the number of crypto and blockchain startups in the country, and interest in crypto at new highs. Regulators — always cognisant of the revolutionary potential of blockchains — are warming up to the diversity in the crypto market.
India is embracing crypto
Let’s capture this moment that throws light on how we fared so far. As a country, we’ve had an exhilarating journey, where we’ve had to break free from our fixed mindsets that jaded our perspectives on crypto and the truly transformative technology that underlines it.
I believe since the pandemic, the voices of the Indian crypto community have been heard by our policy regulators and law enforcement agencies, who perhaps got a glimpse of how easy and efficient things could be if we as a country innovated and learned more about crypto and blockchain.
There’s been recognition and acknowledgement of our goal to highlight the true value crypto represents in India. The Supreme Court, while lifting the RBI banking ban in March 2020, prepared the ground for crypto adoption when it stressed ‘alternative regulatory measures’ rather than a complete ban for regulating the risks associated with crypto trading. The Indian crypto community, despite the government’s well-intentioned scepticism, has been growing ever since.
Thus, from a two-year lull (though we never stopped talking about crypto), suddenly everyone was talking about Bitcoin in 2020. In 2021, even NFTs are being discussed as a viable asset class investment option in Indian crypto circles as people realise more crypto use cases in real life.
The current state of crypto space in India
The Indian crypto industry has grown manifold since the lifting of the ban. A hub for digital innovation and startups for decades, India is all-embracing and forward-looking amidst the lack of regulatory clarity. The Chainalysis 2020 Geography of Cryptocurrency report ranked India 11th in the list of global crypto adoption, given its user base of 10 million crypto users trading in volumes reaching up to $350 million on a daily basis.
Indians have traditionally invested in gold and deposits. Bitcoin is becoming the new gold with millennials who prefer it over the gold. About 55 percent of the total $1.5 billion worth of crypto assets in India are held as Bitcoin. The tech-savvy young crypto enthusiasts closely are in the same camp as US tech giants like Tesla and Paypal that have invested in Bitcoin.
With global crypto-assets over a total worth of $2 trillion, global crypto adoption is far from slowing down.
A considerable number of corporations are allowing transactions in crypto and offering crypto assets to their consumers. Bitcoin enjoys a legal status in many developed countries like the US, Japan, and the UK. While countries have accorded cryptos the status of a digital asset, there are instances where the income from…
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