With the increasing popularity of cryptocurrencies around the world, many people in India have become interested in investing in these digital assets.Â
According to recent reports, crypto users in India now account for 53% of the world’s total this year, which is five times the number of users in the United States. This is despite the government’s negative attitude toward cryptocurrency.
The country saw explosive growth in the usage of cryptocurrencies during the pandemic. An earlier survey conducted by KuCoin revealed that the country had about 115 million crypto investors as of June 2022. The high surge in crypto adopters can be attributed to the country’s expanding, educated middle class together with a less-developed traditional financial system.
Additionally, Fintech, mobile technology, and blockchain technology have also aided the growth of cryptocurrencies in India. Blockchain, the underlying technology behind cryptocurrencies, has many potential applications beyond currency. Remarkably, many Indians are intrigued by the potential of blockchain to transform industries ranging from healthcare to supply chain management.
Furthermore, the development of mobile technologies also fueled the growth of cryptocurrencies in India. Almost 1 billion people in India use smartphones. As a result, there is now a sizable user base that is accustomed to making digital payments and prepared to invest in cryptocurrencies.
The State of the Crypto Industry in India
The state of the cryptocurrency industry in India remains uncertain. While interest in cryptocurrencies is growing, a lack of regulatory clarity and potential government crackdowns pose challenges for crypto businesses operating in the country.
The Reserve Bank of India (RBI) prohibited banks from dealing with cryptocurrency-related businesses in the past. This created a lot of uncertainty and challenges for crypto companies operating in India. However, the Supreme Court overturned the ban, but there is still uncertainty around the regulatory environment for cryptocurrencies in India.
In February, Nirmala Sitharaman, India’s Finance Minister, revealed that the G20 is debating whether to regulate cryptocurrency as a group. Sitharaman stressed the importance of a strong regulatory structure because of concerns over financial instability brought on by the adoption of cryptocurrencies.
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