Cryptocurrency is highly popular in India, so much so that it has made the country have the second-highest number of crypto holders in the world!
The country, which does feature as the world’s second-most populous nation with a population of more than a billion, was found out to be rather favorable to virtual digital assets in a Chainalysis report that was produced recently, with many findings that the Asian nation has truly embraced them – at least in regard to the wider population.
When you take a look at the report to have been concluded, Chainalysis had found that India was only second to Vietnam in regard to the number of crypto users based in the country following the conclusion of 2021. According to the same report, it had been identified that they had a market growth rate of 641%, although notably, that was significantly behind the 711% that had been experienced by Pakistan.
Why have there been so many Indians adopting and embracing crypto?
The report looked at trying to find a number of indicators that would help to suggest why there had been so much interest in crypto within the country and why so many Indians were embracing virtual currency, with one growing trend within the nation appearing to have played a significant role.
The use of bitcoin online casinos had experienced a huge surge of interest recently, with it becoming evident that crypto gambling had been on the rise. Many were using Bitcoin to enjoy a number of wagering services due to benefits that could be experienced when it is used, including the fact that there were no limitations to transactions that were being made. Indeed, this perhaps explains the fact that India had experienced around 14% of the global transactions to take place featuring digital assets, with a 706% transaction increase being experienced nationwide.
Investing has become easier
Another factor that has been identified by industry experts and prominent figures at top businesses including crypto investing, with some pointing out that it is a lot easier for the Indian population to use virtual currency to invest rather than using traditional means.
Chainalysis’ report found many were encouraged to make more investments or become involved in them due to the simplicity that they were provided with by using crypto, with many finding that the sector had become more accessible. The use of crypto had also allowed them to enjoy quicker transactions, which meant that they were able to make an investment and potentially receive any returns quicker than traditional methods are able to provide them.
The Principal of LedgerPrime, Joel John, highlighted this in the report, as he stated that the process to get involved in investing within India is a lengthy process and is dramatically shortened when using digital assets. He said: “Investing inequities in India is a long, painful process that requires you to sign lots of documents. It takes about three to four days. Investing in crypto takes less than an hour.”
Workforce wants to be paid in crypto from overseas companies
The workforce within India has also contributed to the dramatic rise of crypto in the country, as many who work for overseas companies have started to ask for payment in crypto instead of traditional currency. This could be for a variety of reasons, however, it is something that seems to be rather appealing to many at the moment.
Managing Director of Quantstamp, Krishna Sriram, stated: “Tons of Indian developers, fund analysts, and independent freelancers working for overseas employers have started requesting to be paid in cryptocurrency.”
Is India becoming crypto-friendly as an entire country?
India does appear to be moving, as a whole, towards being a crypto-friendly nation, though, as Finance Minister Nirmala Sitharaman has already revealed that there will be some clarity provided in the near future, whilst the government’s budget already highlights plans to tax digital assets in 2022/23.
What happens in the future is certainly interesting to see, although it might be worth keeping an eye on developments for the time being.