The Supreme Court of India, in May 2020, gave India a much-needed boost in terms of cryptocurrency by overturning the Reserve Bank of India’s (RBI) 2018 cryptocurrency ban. Digital currency in India is expected to open new doors for investors. This is a significant move forward in India’s innovation, as it allows everyone to participate in the blockchain revolution.
Digital currency in India
More financial inclusion in the country is unquestionably possible. According to figures, India has a population of more than 1 billion people, with more than 300 million people in the middle class. Overturning India’s crypto ban would promote more crypto startups in the country.
The youth, who are more interested in cryptocurrency adoption, make up the majority of the population. The youth aged 28 to 29 years old are the most enthusiastic about cryptocurrency trading in India. Furthermore, according to the BBC, a gigabyte of mobile data costs $0.26 in India vs $12.37 in the United States.
As a result, India has enormous potential to become one of the world’s largest crypto economies. According to the EY Global Fintech Adoption Index 2019, India is one of the fastest-growing markets, with 87 percent of the population using fintech in some form.
Furthermore, since India has 190 million unbanked adults, Blockchain will promote more financial inclusion and digital currency in India.
Furthermore, according to a Quartz survey from 2018, one out of every ten bitcoin transactions in the world took place in India. Furthermore, after the United States, India is the second-largest source of web traffic to Paxful. Paxful is a bitcoin exchange site that allows users to trade with one another.
The Covid-19 pandemic is most likely to blame for such attention. People were forced to stay at home for months due to the pandemic. Some people have also lost their jobs as a result of this. As a result, people in India began investing in cryptocurrency as a means of generating income. BuyUcoin is India’s largest exchange.
However, in the midst of the excitement and success, it’s critical to have the requisite policies and regulations in place for this booming technology. Given India’s rapidly growing crypto market, policymakers and governance seem to have recognized the opportunity to adopt a promising innovation early. As India’s cryptos become standard with widespread applications, the number of use cases around the world is growing.
The use of blockchain in ‘regtech’ for regulators to collect and store data, in automated risk management, and for the facilitation of supervisory processes and regulatory reporting are just a few examples. CBDCs are currently being issued by national banks all over the world, from the European Central Bank to China’s and Turkey’s. This may also be possible in India.
A cutting-edge crypto strategy can have a significant impact on improving India’s overall financial base, helping to protect public security, deflect financial fakes, fortify our monetary policy, attract global capital, create more job opportunities, and retain our tech talent to accelerate technological developments, thus propelling the country toward becoming a global force to be reckoned with.
Furthermore, India devotes a significant amount of resources to safeguarding its currency, and the RBI will exercise extreme caution to ensure that cryptos do not experience a backlash, which could result in a rupee devaluation.
More importantly, as we can see with the introduction of the Payment Services Act in Singapore, regulating digital currency would legitimise its use in both business and personal settings.
We need a well-thought-out regulatory structure that promotes openness, and responsible market democratization could help us prepare for digital invasion and coercion. A preventative guideline will screen and prevent certain unfavorable outcomes.
Source : Analytics Insight
