India is living through interesting times for the cryptocurrency domain. In India, exchanges’ daily trade volumes are increasing by billions of dollars. The nation is also experiencing a burst in the count of blockchain and crypto startups. Let’s not forget that the public’s interest in crypto is at an all-time high. Even regulators are starting to embrace the diversity in the crypto market, despite their knowledge about blockchain’s impressive potential.
While things weren’t always this bright for India’s growing community of crypto enthusiasts, regulators are finally hearing their voices. Law enforcement agencies and policy regulators are beginning to see what the hype is all about. No doubt, it’s true that things could become more efficient and easy if governments incorporated blockchain and crypto.
For India’s crypto communities, there has been recognition of their aim to highlight the value cryptocurrencies can provide. In March 2020, the Supreme Court of India lifted the RBI banking ban. In the process, it reiterated the importance of alternate means of regulating it. This was a better solution as opposed to completely banning digital assets. After all, the goal is to be proactive rather than reactive. Therefore, fully banning digital currency won’t help regulate the risks of crypto trading.
Of course, the community understands that the government’s skepticism is well-intentioned, but they’ve been growing consistently. Suddenly, everyone in India started discussing Bitcoin in 2020. Now, in 2021, India’s crypto circles are even considering NFTs as a lucrative asset class. This phenomenon is growing as more people see real-life crypto use cases.
Since the ban was lifted, the country’s crypto industry has grown considerably. Let’s not forget that India has been a hub for startups and digital innovation for many decades. Now, they’re looking forward to a future with crypto despite the absence of regulatory certainty.
According to the 2020 Geography of Cryptocurrency Report by Chainalysis, India ranks among the top countries by crypto adoption. The nation of over a billion people is ranked eleventh on the list of global crypto adoption. This is considering that it has a crypto user base of around 10 million users. Altogether, they trade in volumes that go as high as $350 million every day.
Traditionally, Indians have considered investments like deposits and gold. Now, Bitcoin is considered the new gold as millennials are preferring it over precious metals. Over half of the complete $1.5 billion worth of crypto assets in the country are in the form of Bitcoin. Today’s crypto enthusiasts are the tech-savvy youth who are gaining an interest in alternate forms of currency.