It’s hard to go even one day without hearing the words crypto and blockchain, which is why many people are looking to this current trend that promises excitement and the hope of huge returns. Both private individuals and larger companies are starting to really adopt these kinds of digital currencies, and with India having a burgeoning tech ecosystem as well as a large, youthful population, it could stand out as one of the biggest countries to accept this revolution. Before you dive head first into crypto, though, it’s important for you to understand the key crypto trends in India, so that you can comprehend the broader implications for the global crypto market and the future of digital finance.
Regulatory Uncertainty and Evolving Legislation
It’s only natural that a currency so new and volatile will need to be regulated on a much larger scale going forward. First, legislators need time to get into the dynamics and technology behind crypto. One of the most prevalent trends that people in India face when it comes to cryptocurrency is the ongoing regulatory uncertainty. While India is pretty progressive and open-minded, specifically when it comes to tech and the like, the Indian government has fluctuated between embracing and opposing cryptocurrencies, so it’s tough for the general population to really get a clear view of what’s going on.
First, there is the Indian government’s stance, which must of course be considered and respected. Initially, as many other governments did too, Indian officials where really skeptical about cryptocurrencies, not least because of their very valid concerns over the potential use of crypto in illicit activities and their volatile nature. The Indian government wants to keep their people safe and felt that crypto would make it much easier for individuals to be anonymous on the internet and thus create a space for nefarious dealings. This does make sense. What actually ended up happening was that the Reserve Bank of India (RBI) imposed a banking ban on crypto transactions in 2018. However, the Supreme Court of India actually lifted this ban on crypto two years later.
After the ban was lifted, crypto really grew in popularity and that meant that the Indian government had to work extra hard on regulatory frameworks to address concerns and provide clarity. To safeguard consumers and users, a new Bill was drafted, namely the Cryptocurrency and Regulation of Official Digital Currency Bill. The objective of this Bill, you ask? Well, at the core, it aims to create a central bank of digital currency (CBDC) and regulate private cryptocurrencies. People interested in this field still need to make their own decisions by researching, staying up to date on the latest pinetwork price, and generally trusting their gut and sticking to their limits, both in terms of finances and time spent online.
A Surge in Cryptocurrency Adoption
The Bill mentioned above and the work done by the Indian government has definitely made a dent in what needs to be done in this domain. However, despite regulatory challenges, people in India have adopted cryptocurrencies to a very large extent, with this trend driven by several factors. First and most obviously, many see it as a good investment opportunity because traditional investment avenues seem to offer limited returns. You may have heard of riding the wave, meaning that you have to be able to go with the ups and downs if you want to be successful in crypto trading. This brings up a very significant point: crypto is an option for those of you who enjoy the thrill. If you are a person who likes to live on the safer side, then perhaps investing in property may be more up your alley.
But back to larger returns. Indian investors are turning to cryptocurrencies as a potential avenue for higher gains, even though it should be noted that nothing is guaranteed in the volatile world of crypto. Platforms like WazirX, CoinDCX and ZebPay have reported substantial growth in user numbers and trading volumes, which is interesting based on the regulatory uncertainty and high volatility. India’s young and tech-savvy population are also embracing cryptocurrencies with enthusiasm, most probably because dreaming big is a beautiful thing when you’re young. Crypto is not a get-rich-quick kind of solution, it takes years to perfect trading and a financial background doesn’t hurt either. There are ways to learn how to invest and trade, something that the younger generation really is taking advantage of.
Growth of Blockchain Technology
If this field interests you and you’d like to get acquainted with and understand crypto in general, it would be a fabulous idea to understand the technology behind it, called blockchain technology. This is the underlying framework for cryptocurrencies, but it’s also gaining traction in India far beyond the realm of digital currencies. Both the Indian government itself and the private sector are increasingly exploring blockchain’s potential for various applications. The Indian government has recently initiated several blockchain projects, in which they aim to improve transparency and efficiency in public services, most probably to combat corruption and keep an eye out for any negative happenings online. There are a few examples of what the Indian government has used blockchain for in recent months, namely records management, digital identity verification and supply chain tracking, to name a few.
