Cryptocurrency confidence among Indian citizens has weakened considerably, with 59% supporting a complete ban following major exchange security breaches. According to a LocalCircles survey covering over 43,000 responses across 311 districts, 82% expressed little or no trust in cryptocurrencies, highlighting growing concerns over investment safety and regulation.
The survey revealed that 66% of respondents reported zero confidence in cryptocurrencies, compared with 49% in 2021. Another 16% expressed low trust, while only 4% reported high confidence. Average confidence declined from 12% to 6%.
Participation also remained limited. Among 10,819 respondents, 76% reported no cryptocurrency investments within their households, while 16% indicated participation by one family member.
The findings follow several cryptocurrency exchange breaches, including Binance's October 29, 2026 attack. According to Chainalysis, approximately USD 5.9 billion was stolen, while Binance estimated the impact at USD 6.3 billion.
The exchange reportedly froze nearly USD 3 billion on-chain and committed to covering customer losses.
Other incidents included Bitget's USD 387.5 million September breach and CoinDCX's USD 16 million October wallet compromise.
The July 2024 WazirX attack, involving approximately USD 230 million, also continues to influence perceptions of exchange security.
Among 10,776 respondents, 59% supported prohibiting cryptocurrencies entirely, while 16% favoured taxing them as overseas digital assets. Another 19% supported domestic legalization and taxation, while 6% remained undecided.
The findings demonstrate substantial opposition to private cryptocurrencies, although the survey does not establish nationwide voting preferences.
Despite widespread cryptocurrency scepticism, respondents showed stronger interest in the Reserve Bank of India's digital rupee.
Among 10,906 participants, 56% expressed willingness to use the central bank digital currency for consumer and business transactions. Another 21% opposed adoption, while 23% remained undecided.
Introduced in 2022, the digital rupee represents central bank-issued money rather than a privately operated cryptocurrency.
The contrasting responses suggest that government oversight, financial safeguards and institutional accountability could significantly influence public acceptance of digital payments.
However, broader adoption will depend on accessibility, consumer awareness, transaction convenience and confidence in the underlying infrastructure as India's digital financial ecosystem continues to evolve.
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