Cryptocurrency has continued to wax stronger even amidst stringent regulations in India. Crypto adoption in the South Asian country has risen by 30 percent since March 2020. Largely, the rise in the adoption of crypto has been blamed on Bitcoin price surge this year.
BTC has increased in price by 400 percent this year as altcoins have also enjoyed a consistent price surge. XRP, USDT, TRX, and BTC are reported to be the most popular crypto asset in India.
Inspiration behind rise in India’s crypto adoption
An active player in India’s crypto space, Vikram Rangala, the Chief marketing officer of ZebPay, spoke about the surge in crypto adoption in the country.
In an interview, the marketing officer explained that Indians do not shy away from new investment vehicles, and they fall in line with global trends. He also said that the younger generation who saw the 2008 financial crisis and skeptical about the economic status quo explore alternative ways to store their wealth, he explained.
ZebPay is India’s oldest cryptocurrency exchange with about 4million customers. According to Bloomberg, the exchange, which is also one of the most popular in the county, processes $2billion worth of trades monthly.
Summit Gupta, CEO, and co-founder of another Indian crypto exchange CoinDCX said lockdown and other measures put in place to stop the spread of the dreaded COVID-19 virus helped boost crypto adoption in the country as an investment in crypto saw sustained growth.
He said retail investors are also becoming more aware of the asset’s potential due to its deflationary nature, making it a better hedge against market shock.
India’s frantic crypto regulatory space
Amidst the continuous interest Indians have shown in cryptocurrency, the future of trading cryptocurrency in the country remains uncertain as the environment is hostile for crypto traders.
The Reserve Bank of India does not buy into the idea of cryptocurrencies but is open to a Central Bank Digital Currency (CBDC). The Bank has raised concerns about crypto, stating that it threatens the country’s financial stability.
The Bank in 2018 placed a ban on financial institutions from supporting cryptocurrency. The ban was overturned in 2020 by the country’s Supreme Court after a petition by crypto exchanges in the country.