Cryptocurrency has been gaining traction in India with the government’s recent stance on crypto. India has a population of well over 1.3 billion and is the world’s second-largest economy. As such, the potential impact within the crypto space in India is huge.
India’s Supreme Court Opens the Door
Cryptocurrency has been around for some time in India, but it has only recently become more widely accepted. In 2018, the Reserve Bank of India (RBI) banned the use of cryptocurrencies for payments and transactions. This ban was then overturned by the Supreme Court in March 2020. This ruling has since opened the door for crypto to become more prevalent in India.
Regulation for Crypto in India
The Indian government is still looking to regulate the cryptocurrency market, and the government has set up a committee to study the potential legal and regulatory framework for cryptocurrency. However, meanwhile, no clear rules or guidelines seem to exist within the Indian crypto space. This means that cryptocurrency trading is still being done purely at the investors risk which can have a detrimental effect on the market.
Early Stages of Crypto Development
The Indian cryptocurrency market is still largely in its initial stages of development compared to some of the earlier adapter countries. There are still only a handful of credible exchanges that operate in the country. In addition, with no clear regulatory framework in place for cryptocurrency trading, this has not at all been beneficial to the industry as a whole.
Still Rapid Growth Without Crypto Regulation in Place Yet
Despite the lack of clear regulation, the Indian cryptocurrency market is growing rapidly. According to a recent report, the number of crypto users in India has grown from around 1 million in 2018 to over 150 million users in 2023. The report estimates that the Indian cryptocurrency market to be worth around US$222.7 billion in 2023 and could easily rise to around US$324 billion by 2027.
Indian Government Opening Up
The Indian government is also encouraging the use of blockchain technology. This technology is being tested in the banking, finance, and government sectors. The Indian government has also set up a “blockchain incubator” to promote the development and use of blockchain technology throughout the country.
Future for The Crypto Market in India
Overall, India is slowly catching up with the rest of the world when it comes to cryptocurrency and blockchain technology. With the government’s recent stance on crypto, the potential for growth is huge. With the right regulations and infrastructure in place, India could become a major player in the crypto market soon, with a user penetration being estimated at around 14.52% in 2023 and expected to hit around 22.37% by 2027.
Reference: Author: BitcoinBulldog.com 03-11-2023 All rights Reserved – This Article May Not Be Reproduced Without Prior Written Permission from The Author.