As A developing nation, India is beginning to embrace the concept of cryptocurrency. Experts believe that this could be of great benefit to the country’s financial situation. The Indian cryptocurrency market is on the rise, and could be a sign of positive things to come.
According To Jaro Education, an online platform for higher education, India has the highest number of cryptocurrency users in the world, with Rs 10.07 crore. The growth of the market is largely driven by the younger population, and it’s clear that the Indian government is open to the idea of digital currency. A year after its announcement, the government introduced pilot programs for the cryptocurrency market in the retail and wholesale sectors.
Industry reports suggest that the widespread adoption of Bitcoin and Ethereum could help to reduce intermediaries and transaction costs, as well as improving foreign trade. However, after the collapse of the FTX cryptocurrency exchange, spot trading volumes among Indian crypto exchanges dropped.
The Reserve Bank of India (RBI) is looking into the possibility of introducing a digital Rupee (e-Rupee). This could help to facilitate real-time account settlements and lower transaction costs, as well as improving communication. Sathvik Vishwanath, the co-founder and CEO of Unocoin, a cryptocurrency exchange, believes that central bank digital currencies (CBDCs) could co-exist with cryptocurrencies, and improve the digital financial ecosystem.
Long-term crypto adoption is expected to benefit a number of sectors, including banking, finance, insurance (BFSI), logistics, pharmacy, education, and healthcare. The government intends to regulate cryptocurrency at various stages, and the Digital Asset and Blockchain Foundation of India (DABFI) has taken on the responsibility of educating the public on cryptocurrency security and identification checks.
The implementation of cryptocurrency tax was an indication of India’s progressive attitude, and for FY24, the government should treat the industry equally with other assets. Achieving policy objectives such as consumer protection, market conduct and competition, data privacy, and prudential stability, will necessitate a set of regulations.