Cryptocurrency in India: Nation’s New Power but with Regulations

Cryptocurrency in India is set to open new doors for Indian investors

In May 2020, The Supreme Court of India gave India the much needed boost in terms of cryptocurrency by overturning the cryptocurrency ban in India that was levied by Reserve Bank of India (RBI) in 2018. Cryptocurrency in India is set to open new doors for Indian investors. This is a step forward in innovation in India where everyone can be a part of the blockchain revolution.

We can definitely experience more financial inclusion in the country. If we look at the statistics, the population of India is more than 1 billion, of which more than 300 million people belong to the middle-class category. Overturning the crypto ban in India will encourage more startups in crypto in India.

Majority of the population is the youth, digital-savvy people who are more interested in the cryptocurrency adoption. Youths of 28- to 29-year-olds are the ones that are very enthusiastic about the cryptocurrency trading in india. Moreover, according to BBC, one gigabyte of mobile data costs $0.26 in India, which costs $12.37 in the U.S.

This implies India has immense potential to become one of the largest crypto economies in the world. As per the EY Global Fintech Adoption Index 2019, India is one of the growing markets that is paving the way with around 87% of the population embracing fintech in some form.

Moreover, with 190 million unbanked adults, Blockchain will encourage more financial inclusion and digital currency in India as there is more access to digital assets

To add more to this, as per a report in 2018 by Quartz, one in every 10 bitcoin purchases in the world took place in India. What's more, India is regarded as the second-largest source of web traffic to Paxful after the USA. Paxful is a peer-to-peer bitcoin trading platform.

Probably the reason behind such highlights is the Covid-19 pandemic. The pandemic forced people to be locked at home for months. Some even lost their jobs. Hence, to find an alternative way of making a living, people started investing in cryptocurrency in India. WazirX is the largest exchange in India. Since March 2020, the user count has grown three times on WazirX with a trading volume growing up by a factor of at least eight.

However, amidst the noise of popularity and hype, it's vital to have necessary policies and regulations around this booming technology. Given the rapidly advancing crypto market in India, policymakers and governance seem to have acknowledged this opportunity to proactively embrace a promising innovation. Worldwide use cases are increasing, as India cryptos go standard with widespread applications.

Uses of blockchain consist of its utilization in 'regtech' for regulators to gather and store data, in automated risk management, and for the facilitation of supervisory processes as well as regulatory reporting. National banks on the entire globe, from the European Central Bank to China's and Turkey's, are currently giving CBDCs. This could be possible in India, as well.

A cutting-edge crypto policy can essentially affect improving India's, by and large, financial foundation, help protect public security, deflect financial fakes, fortify our monetary policy, pull in worldwide capital, set out more job opportunities, and hold our tech talent to speed up technological innovations, hence,  driving the country towards turning into a worldwide power to be reckoned with.

Moreover, India spends a lot of assets taking care of its currency and the RBI will be extremely mindful so as to guarantee that cryptos don't have a back leave, which could prompt a rupee devaluation .

All the more critically, as we are seeing with the launch of the Payment Services Act in Singapore, the regulation of digital currency will legitimize their utilization in both business and individual settings.

We need an effectively thought out regulatory framework that works with transparency, and the responsible democratization of market members could prepare for digital invasion and coercive behaviour. Pre-emptive guideline can screen and forestall such bothersome results.