The advancement and extensive growth of technology and communication technologies have made many of our day-to-day activities much easier and efficient.
Most activities in our daily life are now digital and have been merged online. With more and more people using the internet and technology, there has also been a rise in virtual world concepts like digital payments, online business, and much more.
One such virtual world concept is cryptocurrency. Even though it is already a decade old, this monetary phenomenon has seen a stern growth over the past few years.
Investopedia defines cryptocurrency as “a digital or virtual currency that’s secured by cryptography”. Digital currency implies that it only exists electronically. They are typically not issued by a central issuing authority or regulatory body, which means it isn’t attached to a state or government.
You can’t hold it in your hands or store it in your wallet. It is a really innovative concept, and if you want to learn more about cryptocurrency and its working, we’ve got a whole article dedicated to that which you can check out here. You can also check out this video for a quick and easy understanding of cryptocurrency in brief.
In this post, we are going to talk about Cryptocurrency in India – what is the Current Scenario and its Future In India. Let’s dive in.
Current Scenario Of CRYPTOCURRENCY In INDIA
Despite being a decade old, cryptocurrency is still a novel concept in India. In 2018, the Supreme Court imposed a ban on its use trading in India. The number of searches related to cryptocurrency has also seen a rise over the last few years in India. This implies that its popularity is increasing gradually and more and more people are now expressing interest in it.
However, there are also many people who are against the concept of digital currency. In India, demonetization paved way for the tremendous growth of digital transactions in India. However, when they were introduced people had their own doubts and uncertainties. The same is with cryptocurrency.
The advent of cryptocurrency can be traced back to the year 2012 which saw some small-scale Bitcoin transactions taking place across India. Then in the year 2013, the cryptocurrency began gaining more popularity within the country. A pizza shop in Mumbai became the first food outlet in India to accept payments in Bitcoin.
The following years also saw an increase in the popularity of digital currency in India. In the year 2016, when demonetization took place, people started to invest more and buying large orders of Bitcoin and other similar digital currencies. This allowed them to sell at a later date. The use of cryptocurrency for investment in shares also began this year.
However, the year 2017 saw a “Bitcoin Crash” when the Indian government issued a warning against the use of bitcoins and also acknowledged the possibility of frauds known as Ponzi Schemes. The government may continue to have the same opinion for cryptocurrency until and unless some regulations are in place in the cryptocurrency markets. The crypto crash can also be attributed to China and its warning against investing in cryptocurrencies.
The next year saw some serious legal procedures for the crypto market when the Finance Minister announced that the Indian government denies the use of cryptocurrencies as a legal tender. The government also expressed a stern desire to eradicate the use of cryptocurrencies. A ban was also imposed by the RBI due to the unregulated setup and risks of digital currencies.
A draft bill was passed in the same year in the country. It prohibited a lot of activities related to cryptocurrencies like creating, buying, holding, selling, and so on. However, the bill permitted the use of technology or processes related to cryptocurrency for any experiment and, research. The following three years have also been a roller coaster ride for the cryptocurrency market.
The FUTURE Of CRYPTOCURRENCY In INDIA
India has witnessed a rise in the use of cryptocurrency over the past few years. According to the Internet and Mobile Association of India, the total number of verified virtual currency users stands at 1.7 million in India.
According to two of the top exchanges in India, investors are spending lakhs on trading in digital currency in the country every day. Moreover, India’s crypto exchange, WazirX, saw a 125% increase in user signups, further solidifying the growing interest of Indians in cryptocurrency.
However, the Indian government is planning to table the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021“. This would promote the development of a digital version of the Indian Rupee and ban private cryptos, such as bitcoin.
It will work towards creating a facilitative framework for the creation of the official digital currency to be issued by the RBI. The Bill also aims to ban various private cryptocurrencies in the country. But, it offers some provisions supporting the underlying cryptocurrency technologies.
In response to this, there have been many online campaigns like the #IndiaWantsBitcoin campaign. Several Websites like indiawantscrypto.net and indiawantsbitcoin.org has also been launched that aims to help the citizens of India urging the Loksabha for positive and beneficial progressive regulation of the cryptocurrency markets.
Hence, it can be concluded that the future of cryptocurrency still remains somewhat unclear. Digital Currencies are already on the rise worldwide, and there is so much going on in the Indian crypto market already. Needless to say, a lot of factors, majorly the government provisions will control its growth and use in the country.
So, that was it for this post. Don’t forget to share what you think the future has in store for digital currencies in India in the comments section down below!