Your Guide to Cryptocurrency: Future of Cryptocurrency in India
The 2021 belonged to cryptocurrency. The hype was for all the right reasons as the main reason behind this is that cryptocurrency became popular in the form of an investment for the millennials. With the passage of time, more and more people started investing and trading in crypto coins across the globe and especially in the Indian origin. The main reason why the same thing can be observed in India as well, mainly in the year 2020-2021.
The pandemic has been some good to the world of cryptos. There have been many regulations that have been recently passed by the RBI. The fact that cryptocurrency was banned in India was an issue but with the passage of time, crypto trading started again. However, in the recent past, neither were the crypto trading recognized by the Government as legal tender nor were they a part of the RBI regulations. There are no laws that restrict or prohibit trading in crypto currency. In that sense, the idea of cryptocurrency is emerging from any other asset like gold, commodities, and many more.
What is Cryptocurrency?
Cryptocurrency is a decentralized, encrypted, peer-to-peer digital payment system that doesn't require a third party to verify the transaction. Instead of physical cash carried around and exchanged in the real world, crypto payments exist as virtual entries synced to an online database depicting specific transactions.
Speculations regarding the Cryptocurrency future in India
The cryptocurrency market in India is huge. India has become probably the greatest market in Asia for digital currencies and one of the quickest developing on the planet. The nation has 15 local digital money trade stages. Many surveys have been conducted and it has been observed that 95.20% of the total respondents of the survey believed that cryptocurrencies in India will exist even after a decade. The survey results also show that the remaining 4.80% of the respondents think that the trading in cryptocurrencies will not exist in the future with government regulations as the government might come up in the future. But with so many investors that are investing in trading in cryptocurrencies, there are higher chances that crypto will exist in the future even with the regulations put on by the global governments including the Indian Government.
Growth of Digital Assets in India
Different types of cryptos like Bitcoin and other cryptocurrencies have been growing rapidly in India. This is despite the restrictions from the Center and the Reserve Bank of India. According to some estimates of the global market, over 10 crore Indians own cryptocurrencies. This advent is making India the country with the largest number of Bitcoin holders in the world. Recently, as per the market stats, the Bitcoin hit $60,000 for the first time in six months and this whooping market figure is nearing its record high.
Between 2012 and 2017, both the demand and popularity of cryptocurrency in India grew immensely. In India, the concept of cryptocurrency exchanges like Zebpay, Coinsecure, Unocoin, Koinex, and others like Pocket Bits have sprung up during this time ending in 2017. Many other cryptocurrencies were also introduced in the global digital economy.
It is an important fact that needs to be understood that crypto has never been banned in India. Also, the concept of crypto mining is also not banned. At the same time, it was not completely legal to trade in crypto either since there is no law governing it until the introduction of the digital rupee.
Also read- Top 5 Best Ethereum Wallet [2022] With Highlights & Additional Features
Current Status of Cryptos in India
The passing of the crypto bill that the Union Cabinet had currently worked upon is unlikely to outright ban cryptocurrencies, but it will regulate them. As per a recent market report, India’s cryptocurrency exchanges would be regulated by the Securities and Exchange Board of India (SEBI). The Indian citizens would be compelled to keep their cryptocurrencies on Indian exchanges. The Indian population would have a set length of time to move their funds in the form of investments when the law is implemented, after which they might be penalized it to fall in the range of 5 to 20 crore. According to the Finance Minister, Mrs. Nirmala Sitharaman, for the current budget of 2022-2023, the government is aggressively scrutinizing the hazards that cryptocurrencies pose to the Indian economy like the competition from international investing options. The future of cryptocurrency in India is very propelling.
There appears to be no end to the uncertainty that is occurring in the Indian cryptocurrency industry. The Indian nation seems to have put off creating legislation that will promise a better tomorrow that will indicate its regulatory approach to the developing businesses and startups.
