2013 witnessed the movement of Cryptocurrency to India, through the coin UnoCoin. Nobody knew Crytpcurrency would emerge as the game-changer in the next following years. There are various factors that we should give credit to, for the rise of the Cryptocurrency market in India. Cryptocurrency has its causes and impacts in India. All the reasons have been born in India, from the growth to being an impactful element in the economy. Cryptocurrency started spreading among Indians, due to demonetization. The ban of Indian Large notes changed a lot on the virtual market. RBI’s circular against virtual money was another spoon of oil in the fire. Covid-19 pandemic, certainly couldn’t restrict the branches of cryptocurrency creeping across the growing nation. The only things that were required for certain and accurate government regulations.
Even in the fledgling state, India’s crypto ecosystem had over 300 crypto companies and 60 lakh investors, investing millions of dollars in them. This is only when 2% of the Indian population are crypto users! With policy-backing, it can revolutionize the Indian economy. And yes, it is. As per the recent data, Indians have invested 15 crores in crypto. So you can imagine the impact it is going to have on the Indian economy. Cryptocurrency is also impacting the economy by influencing the employment rate. Blockchain technology (as a result cryptocurrency) enables transactions between unknown entities as well as transactions between known parties. As a relatively new and booming industry, this is a niche skillset already high in demand. Helping out the entrepreneurs and all.
Not ignoring the IT sector, cryptocurrency has immensely merged with IT to improve its functioning and reach. India boasts of a strong and resilient IT base. The possibilities of collaborating are endless to fortify the blockchain network here, which will give rise to overseas cash influx. Now that Artificial Intelligence (AI) and the Internet of Things (IoT) are out of their embryonic stage, who knows how they will converge with blockchain? Now that would be a fertile ground for future tech giants. RBI’s dire warnings against digital money used for money laundering and terrorist funding. However, as a global phenomenon, it seems to be the way forward and even Supreme Court seems to agree. Data security is a concern though not impossible to address. The rising graph of investors attests to that.
India’s economy is getting the advantage, but recent situations of legalizing it and again few circumstances is indicating a recheck in government’s regulation regarding cryptocurrency. From illegal to legal, and again illegal it might cost us a lot. India is in desperate need of new regulations. Cryptocurrencies have seen an exponential increase in interest ever since the RBI ban was lifted in March 2020, with Indian exchanges clocking impressive user additions and a sustained surge in daily trading volumes. India has the largest number of cryptocurrency buyers. In comparison, the number of stock investors (Unique Client Codes) registered with the BSE in India has risen from 70 million in June 2021 to 80 million at present, according to data by the exchange.
In terms of the number of crypto owners as a percentage of the total population, India stood at the fifth spot at 7.30%. Ukraine ranked first with 12.73% people of the total population owning crypto followed by Russia (11.91%), Kenya (8.52%), and the US (8.31%).
Indian accounts are being flushed with a lot of treasure, which is driving the economy and its elements to a good race. But this present time is not safe. Indian economy’s race might face a downfall if everything turns out a facade. India needs to work a lot and release better and appropriate regulations for Cryptocurrency trading, or else it won’t take time for the profit to take the turn of loss.