Why Cryptocurrency Is Booming In India Despite National Ban Fears
The usage of cryptocurrency is increasing rapidly in India though there are many regulatory challenges. However, these challenges are considered as tiny by people. There is a lot of speculation going on in this country regarding the usage of cryptocurrency and legalizing this currency in the country along with the other cryptocurrencies. The speculations have gained momentum in February when one of the Ministers in India stated to Yahoo that there would be a nationwide ban on the usage of cryptocurrencies. People who hold this currency must exchange this in a matter of a few months. It shook the traders and there is a lot of fear that has been experienced amongst users of cryptocurrency.
However, the Finance Minister, Nirmala Sitharaman told CNBC that blanket ban on the cryptocurrency is something that is overstated. If there is anything related to the ban, there would be a much more calibrated approach would be followed. The calibration has boosted the confidence levels of people and this has resulted in the spike of buying and selling cryptocurrencies in the cryptocurrency exchanges. There are a lot of sign ups happening in the exchanges. It was noticed in WazirX, which is one of the exchanges in the country. The head of the communication of WazirX, Priyanka Sharma stated that there the exchange has received a lot of signups in the month of April compared to the last six months. There is another cryptocurrency exchange that is based out of India; CoinDCX stated that the signups have been doubled in the first quarter compared to the first few months of 2020. It was stated by the CEO of the company, Sumit Gupta.
There are a lot of speculations happening in the country about the ban of cryptocurrency, which has been neutralized with the developments happening in the cryptocurrency world. There are many major firms who are embracing this cryptocurrencies along with bitcoins such as PayPal, MicroStrategy and Tesla which were not noticed by people since the start of COVID-19 lockdown. There is a steep rise in the crypto interest. In the last 12 months, India has observed a spike in the investment on cryptocurrencies with the bank removing the ban. In the lockdown, there are a lot of people who have shown interest in learning about the cryptocurrencies.
The data that is acquired from the publicly available plugins have disclosed that WazirX site has seen a rise by 630% in the last six months and the number of visitors to the exchange has climbed from 5,00,000 to 4 million. There are a lot of signups happening on the website from the people aging 20 to 30. People are pretty confident about the approach being taken freely when the laws related to cryptocurrency would be passed. CoinDCX also observed a rise in the visitors. The majority of signups that this exchange got is from the people aging 18 to 34 years. The FUD created in February would be dismissed and there is no bill that was passed yet. There is no ban that would happen on this currency. With the decision of the Supreme Court with not banning this currency, the demand for this is on the rise. There are around 750, 000 investors in this country who have invested in 340 plus crypto startups.