Bitcoin has set a record for itself and managed to pave the way for other digital currencies to become more viable. Around the globe, people have started to become more accepting of cryptocurrencies and their derivatives. Only this year, BTC was appreciated by 400%. This type of progress is rarely witnessed in traditional stocks and therefore managed to attract investors from every corner of the globe. India is on a mission to become the digital capital in Asia.
It has a rapidly growing economy that is going towards a boom. As expected, the interest of investors from this region has also increased in cryptocurrencies. Since last year, there had been a growth of 30% in the local crypto exchanges. The top coins that are most popular in India are BTC, Ripple, and Tron. Although the market for derivatives like ETFs, NFTs, and futures has yet to take off in India, the locals are more interested in products that are homegrown rather than imported.
Young Generation of India Voting for Crypto
Both developed and developing countries have shown the same age-based behavior towards cryptocurrencies. In India also, the younger generation is more accepting and interested in digital assets than their older counterparts. Vikram Rangala, Zebpay CMO, said that Indian consumers have an open and welcoming mindset towards crypto assets in a media brief. The 2008 financial crisis has nudged people to find better ways to invest like Bitcoin.
Rangala further added that investors are likely to go with crypto assets to use them as a hedge against the influence of the status quo on monetary policies. Zebpay is the pioneer crypto exchange platform of India that has a user base of 4 million. The platform is expected to morph into a trading volume of $2 billion per month in cryptocurrencies, as reported by Bloomberg.
Indian Government Stance on Crypto
The Indian market has huge potential for crypto trading. Sumit Gupta, CEO, and co-founder of CoinDCX, mentioned in an interview that if the retail traders in India could be activated, the flow would amount to multi-trillion crypto investments. He further added that the current pandemic has reshaped the structure and dynamics of an economy and has resulted in boosting the cash flow in the direction of crypto markets.
However, India’s central bank seems to be at odds with composing and implementing crypto-related regulations in the region. In 2018, a national wide ban was imposed on all major banks and financial institutions under India’s jurisdiction. Although the ban has only been lifted recently by the Supreme Court, the central bank has yet to issue policies that make the Indian markets more crypto-friendly.