The rapid digital currencies adoption might help India to emerge as the cryptocurrency epicenter!

India happens to be at a sweet spot for driving growth and innovation in its cryptocurrency sector. In spite of the many rumors of a potential cryptocurrency ban in the country, several use cases, and instances can be considered by the policymakers to understand the true potential of leveraging crypto and its impact on the economy. The cryptocurrency space in India has been witnessing a revolution in the past couple of years. Despite the ambiguity in regulations and extreme volatility, Indian investors are preferring to buy cryptocurrencies as assets over gold.

A mindset shift has led to a surge in the growth of cryptocurrencies. While the future is still uncertain for digital currencies, the government is starting to realize that the technology could be way more significant than the economics of the currency itself. The cryptocurrency craze witnessed its emergence in the Indian markets in 2018 until the government put it off by introducing a ban on banks preventing them from facilitating crypto transactions. However, in May 2020, the Supreme Court of India quashed the rule.

According to reports, the Indian cryptocurrency market is expected to reach US$241 million by 2030 and US$2.3 billion by 2026 globally. Previously, only educated people with knowledge of the cryptocurrency market invested in digital currencies. But recently, the local awe of marketing and networking has influenced general people to try their hand at cryptocurrency trading. By examining the evolution of digital currencies in the country and with China's recent crypto ban, experts believe that India has the potential to emerge as the potential crypto epicenter of Asia.

India also has a new class of crypto investors

The enterprising Indian teenagers have emerged as a new class of investors in the market that is fuelling crypto's growth. Drawn by the hopes of huge profits and looking for ways to explore their early income methods, the kids are buying bitcoin and other tokens and are swiftly getting acquainted with the market ups and downs. The pandemic spurred the transition from online learning to online investing, just within a few weeks. Some teens are even convincing their parents to try their hands at trading digital tokens.

The young crypto investors have no shortage of choices for trading platforms. Trading platforms like CoinSwitch Kuber, CoinDCX, and WazirX have launched social media campaigns to attract more customers to their individual platforms and introduced applications with user-friendly interfaces. The professionals interact with the customers daily to attend to all their queries and glitches. Even though the trading platforms do not allow, minor investors, i.e., below 18, the kids are apparently using their parents' credentials to log in.

Why are Indians choosing cryptocurrencies?

More Indians are investing in digital currencies since the pandemic led to the global economic crisis, resulting in higher volatility and depreciation of traditional assets like currencies, bonds, and equities. As a result, more and more people are investing in cryptocurrencies. While investments in gold are considered as an ideal hedge in times of economic and financial crises, aspiring investors seem to take a renewed interest in crypto.

Experts tracking the sector claim that rapid fintech advancements and greater adoption will lead to a rise in the number of Indian investors trading digital currencies in the future. In fact, some of the leading crypto exchanges in the world have invested in India due to the growing surge in the volumes of digital coin trade and the rising number of retail participants.

While cryptocurrency has witnessed a boom in India over the past couple of years, on the other hand, the regulatory bill remains a hurdle for investors to consider the legal stances of investing in digital currencies. All eyes remain on the Cryptocurrency and Regulation of Official Digital Currency Bill for 2021, which will determine the future of virtual trade in the country.