Last updated on May 26, 2021
India’s sentiment towards cryptocurrency remains strong before and after its ban lift, and 2020 was also a stellar year for female investors.
Paxful released today the results of a survey about the future potential of cryptocurrency in India. The survey highlights what industries will lead the charge towards adoption, where crypto will drive the most progress, and the general sentiments of Indian men and women, ages 18 to 55, 75% of which have crypto investments, regarding digital currency.
India has recently seen a lift on its crypto ban, leaving a world of opportunity accessible to a population of over a billion people. Prior to the ban lift and according to recent Paxful data, Indian’s sentiment around digital currency was quite contrary to that of its government. The trade volume on the peer-to-peer (P2P) marketplace in February was over 3.2M USD. According to the March survey, 93.8% of respondents invested in crypto prior to the 2020 ban lift, with 90% of respondents holding Bitcoin (BTC) and 44% holding Ethereum (ETH).
According to the data collected in Paxful’s survey, 75.8% of respondents rely on digital currencies to efficiently and fairly transfer money in an otherwise limited banking system, and 64.8% believe it is the path to financial freedom. In a world where P2P economics has driven financial inclusion, the survey results fell in line with the global sentiment that cryptocurrency has the ability to provide financial access to anyone who can not participate in the traditional system. Indians fell in accordance with that sentiment, with 51% of respondents in agreement.
The ability to freely trade digital currencies in India has brought immense potential to the ecosystem and the country. The bulk of survey respondents believe in the benefits of crypto. Indians have strong opinions on the future of digital currencies, which aspects of the industry will ensure success, and which industry will drive adoption. According to the data, 64.8% of respondents see crypto enterprises thriving due to the ban lift. They are also heavily calling on Bitcoin regulation, with 75.60% of respondents believing that identity verification and regulatory frameworks (58.60%) are most important to the continued success of digital assets.
The future of cryptocurrency in India looks bright. The survey respondents agree, with 43.40% stating that they look forward to an increase in jobs and the ability to take on entrepreneurial endeavors. It is expected that cryptocurrency usage will continue to flourish—a conclusion that can be based on the statistic that 40.40% of respondents would invest in digital currency over any other investment option. Additionally, 30% of respondents said they would choose digital currency over stocks and bonds, while 14% prefer real estate and gold.
The state of Bitcoin regulation in India today
After over a year, the Indian government has made its move to regulate the use of Bitcoin and other cryptocurrencies in the country. In May 2021, it was reported that the Indian authorities would propose a law that bans cryptocurrencies and would criminalize related activities such as possession, mining, trading, issuance, and transfer of the said assets.
However, the plan to ban digital currencies was immediately replaced with a new crypto regulation. The Ministry of Corporate Affairs (MCA) has made it mandatory for all companies to disclose their crypto-related transactions during the financial year. According to some experts in the industry, the government’s new regulatory framework can be an encouraging and positive step in overseeing and eradicating the potential use of crypto in illegal financial activities in India.
Bitcoin adoption continues to soar
According to data from usefultulips.com, the trading volume in India continues to see positive growth from January 2020 up to this day. From 3.9M USD in January 2020, India’s trade volume soared to 13.77M USD in December of the same year. In 2021, the country’s trade volume reached 11.41M USD in January and 9.92M USD in May.
Paxful.com Indian rupee (INR) Volume
“India has proved itself as a center for innovation, and we’re excited to see the growth and discoveries they will bring to the industry,” said Ray Youssef, CEO and co-founder of Paxful. “India has a lot of potential in all aspects of growth and is especially interested to see how they utilize peer-to-peer finance now and into the future,” he added.