Despite the fact that the government has postponed cryptocurrency legislation in the nation, the RBI is preparing to launch India’s own digital currency to compete with private virtual currencies. Experts are hopeful about the future of cryptocurrencies in India, citing the fact that millions of millennials are already actively investing in the field. Investing in cryptocurrencies is all about diversifying your portfolio and not putting all your eggs in one basket. Cryptocurrency is gaining traction as a new asset class, and investors are seeking ways to diversify their portfolios.
Reserve Bank of India on Cryptocurrency
The Reserve Bank of India (RBI) recommended all organizations regulated by it not to engage in digital currencies in April 2018. In 2020, the Supreme Court contradicted the central bank’s 2018 circular, enabling banks and financial organisations to offer cryptocurrency-related services. In May 2021, the Reserve Bank of India gave banks authorization to support cryptos.
Crypto Popularity in India
According to a poll conducted by Analytics Insight, Indians spent $ 6.6 billion on cryptocurrencies between May 2021 and May 2022. From $923 million in April 2020, a 600 percent rise in seen. Around 1.5 crore Indians have made bitcoin investments. In the blockchain and cryptocurrency field, there are now over 350 firms. The government is adopting a cautious approach to cryptocurrencies, owing to the high level of investor interest and the quickly growing cryptocurrency industry.
What is the future of cryptocurrencies in India?
Cryptocurrency sceptics argue that there is solid cause to think that governments all around the globe will outlaw all cryptocurrencies at some point. Governments and central banks, they argue, will not allow their monopoly control over money to be reduced. On the issue of owning cryptocurrency in India, the government has been sending mixed signals. There is not a complete ban on cryptocurrency in the nation, stated Indian Finance Minister Nirmala Sitharaman in March. The Centre, on the other hand, is expected to introduce the Cryptocurrency & Regulation of Official Digital Currency Bill, 2021, which is expected to include clauses prohibiting the usage of any cryptocurrencies. As a result, the future of cryptocurrency remains uncertain and unresolved in India remains uncertain.
Final Words
Since its launch in 2009, cryptocurrency trading has taken the financial world by storm. In India, too, digital currency is rapidly gaining popularity. According to Chainalysis, a blockchain data firm, India was recently rated second in terms of worldwide cryptocurrency adoption in the 2021 Global Crypto Adoption Index. Crypto trading’s intrinsically decentralized nature provides you complete ownership over your assets, allowing you to possess and store them without the intervention of a third party. Cryptocurrencies are popular because of their complete transparency, which is made possible by open-source, publicly verifiable technology. Despite the volatility and changes that characterize the crypto market, long-term investments in crypto are considered tremendously profitable. Crypto trading is particularly flexible since it is available 24×7, allowing traders to do business at any time of day. Due to this many people are investing in Crypto in India. Hope to see new currency launched by India government soon.
