The cryptocurrency industry is now witnessing a boom in India, cite experts
With a steady pace, the hesitations and indignations for the cryptocurrency culture are wearing off in India. Indian lawmakers and regulators are now inclining their sentiments toward the adoption of cryptocurrency.
This is an encouragement for fintech startups and companies vehemently mushrooming in India. Reportedly, transactions on bitcoin and cryptocurrency have heightened to 30% from 2020-2021. Coin switch Kuber raised $25 Mn at a $500 Mn valuation in just a few weeks. WazirX, India’s most trusted cryptocurrency exchange has already hit $5.4 Bn in transaction volumes in April. The sum has surpassed WazirX’s possession of $500 Mn in December 2020.
The bitcoin price surge has touched INR 23,61,651. Ycharts accords that the bitcoin pricing in the new year shot up to 317.2%.
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Factors that have contributed to the growth of cryptocurrency adoption and integration in India
Lifting Supreme Court Ban
After long precedence of qualms on crypto trade in India, the Supreme Court finally spoke in favor of cryptocurrency and bitcoin in India. This was one of the phenomenal moves by the Supreme Court. It stated that RBI has failed to reveal any harm that was done to banks by the trade of virtual currencies. No defect, whatsoever, came to notice regarding the crypto trade. Virtual currency trades were freed from bans.
The judgment from the Supreme Court acted as a stimulator for the fintech companies that deal with cryptocurrencies and are propagating crypto trade integration in India.
AI-integration in Banking Systems
The rapid adoption of AI and AI integration in the banking infrastructures is yet another turn in the tide for crypto traders. Several banks that support cryptocurrency transactions are increasingly taking to artificial intelligence integrations in their infrastructures to keep frauds and cyberattacks at bay.
The outbreak of the COVID-19 pandemic is one of the most crucial impetuses to the growth of cryptocurrency startups in India. After the pandemic, contactless transactions have become a norm. Owing to this norm, a majority in India is realizing the growing importance of crypto and bitcoin and is making a shift towards the crypto culture.
An additional ray of hope is the discussions on cryptocurrency and bitcoin in the parliament. A total of five questions were raised regarding crypto integration in India.
The questions raised are as follows:
The Impact of Bitcoin on Regular Currency
The question was raised by K.C. Ramamurthy, a member of the Rajya Sabha. The person has also pressed on to the current status of crypto operations in other countries.
In an answer to the question, Anurag Thakur, the Minister of State in the Finance Ministry expressed his doubts on making cryptocurrencies a common and stable means of transaction that entails risk. Decisions regarding it are awaited.
Reasons for Crypto Ban
Derek O’ Brien, a Rajya Sabha member posted a question on the grounds on which crypto in India should be banned. Answers to this have not been disclosed yet.
Cryptocurrency Integration Threats
Parimal Nathwani, a member of Rajya Sabha proposed questions on the threats that cryptocurrency integrations will entail. To this, Anurag recalled the early Budget Speech from 2018-2019, which was against cryptocurrency as it does not deem cryptocurrency as a legal tender.
On the Release of the Cryptocurrency Bill
Priyanka Chaturvedi, a Rajya Sabha member, struck a discussion on the cryptocurrency bill introductions in India. Anurag Thakur, as an answer, cited the early decisions that were taken on the bill. India, in 2021, has witnessed a surge of over ten million crypto investors.
The Challenges that Remain
While the growth statistics of the crypto industry in India mirrors a healthy picture of its settlement in the new future, doubts and misinformation also influence many to withdraw themselves from trading crypto.
Inadequate literacy about crypto is another major factor that imposes resignation on cryptocurrency settlement in India. Some studies have revealed that digital assets, mainly crypto and bitcoin are prone to security attacks. While this rumination cannot be discarded as false, crypto startups and fintech dealing with crypto are striving to overcome the drawbacks.
Another primary reason is the unfairness of banks. Nishchal Shetty, the CEO of WazirX has commented that banks are being unfair to the 1.5 cr crypto holding Indians. Banks are still apprehensive of crypto trade and crypto integration that influences the investors negatively.
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