Cryptocurrency is an encrypted and decentralized virtual currency. Usually, cryptocurrencies are not issued or maintained countries’ central authorities or other financial institutions. There are two types of cryptocurrencies – public and private. Bitcoin, Ripple, Altcoin, and Ethereum are some of the popular forms of cryptocurrencies that are transacted in India.
Adoption of cryptocurrency in India:
India is one of the leading markets for cryptocurrency exchange in Asia, with the second-highest adoption rate in the world. On the Global Crypto Adoption Index, India’s index score was 0.37 in 2021, after Vietnam, which had the highest adoption index score of 1. Cryptocurrency adoption grew by ~586% in India during the 2020 – 2021 period. At present, the country has around 15 million people who hold cryptocurrency assets. Many new retail investors invested in cryptocurrency platforms after the government lifted the ban on crypto transactions following the Supreme Court’s intervention. Cryptocurrency user subscriptions from tier II and III towns grew by ~2000% from January 2020 to January 2021
Impact of COVID-19:
The pandemic, followed by lockdowns, led to economic problems in the country. People started to look for ways to augment their incomes, trading being one of them. At present, cryptocurrency is one of India’s fastest growing sectors and has immense earning opportunities for people. Investments in cryptocurrency increased by ~612% from April 2020 to May 2021. The cryptocurrency market in the country witnessed exponential growth since the onslaught of the pandemic.
- CoinSwitch Kuber