According to a report shared with BeInCrypto, crypto users in India could potentially cross the 150 million mark this year. This would give India more than half the market share of global crypto users. What factors can help speed it up?
Over the past six years, India has experienced a significant increase in crypto investors, despite the government’s historically negative attitude towards the sector.
Various factors have driven the growth of cryptocurrencies in India, including the rise of fintech, the adoption of mobile technology, and the growing popularity of digital payments.
India’s potential to incorporate crypto
One of the primary reasons for the growth of cryptocurrencies in India is the rise of fintech. Fintech companies are increasingly using blockchain technology to create innovative financial products and services. These companies leverage cryptocurrencies to enable peer-to-peer payments, cross-border transactions, and micropayments. As fintech continues to grow in India, cryptocurrencies will play an increasingly important role in the financial ecosystem.
Another reason for the growth of cryptocurrencies in India is the adoption of mobile technology. India is home to the second largest smartphone market in the world with over 1 billion smartphone users. It has created a large user base that is comfortable with digital payments and has the necessary technology to invest in cryptocurrencies. Furthermore, the rise of mobile wallets in India has made it easier for people to transact in cryptocurrencies.
The growing popularity of digital payments is also driving the growth of cryptocurrencies in India. The government’s push towards a cashless economy has led to a boom in digital payments. Many people use mobile wallets and digital payment platforms to pay for goods and services.
Cryptocurrencies offer a secure and convenient means of digital transactions, which contributes to their growing popularity.
Regulatory Hurdles Are in the Way
Despite the growth of cryptocurrencies in India, the government has historically been skeptical of the sector. In 2018, the Reserve Bank of India (RBI) issued a circular mandating banks to deal with cryptocurrencies. This had a direct impact as it led to a temporary drop in the value of cryptocurrencies in India. However, the Supreme Court of India overturned the ban in March 2020, which led to renewed interest in cryptocurrencies. However, in 2023 this tussle remains in headlines.
Recently, Indian authorities banned crypto advertising and sponsorship in the local women’s cricket league. This follows a previous ban for the Men’s Cricket Premier League, which was brought back to 2022. While the government has yet to fully embrace cryptocurrencies, there are signs that it is becoming more open to the sector. In 2021, the Ministry of Corporate Affairs proposed amendments to the Companies Act, requiring companies to disclose any cryptocurrency investments. This shows that governments are more actively regulating cryptocurrencies and recognizing their potential value.
A report shared with BeInCrypto by the team at BitcoinCasinos.com highlights some interesting data to support the narrative. The report found that, within the last 6 years, India has seen an increase in crypto users despite regulatory hurdles.
India may see over 150M crypto users this year
The cryptocurrency market has gained significant traction in recent years and is increasingly being used as a medium of exchange and store of value. It is expected to account for approximately $43B in transactions globally. This is a jump of 24% from last year’s $34.3 billion.
The exact value of cryptocurrency trading around the world may vary depending on market conditions, global adoption rates, and regulatory changes.
Considering this, more than half of that value will come from the United States, the world’s largest crypto market. Yet, given the setbacks, crypto ownership in the US still lags far behind India.
The research claims, ‘India is expected to reach over 156 million crypto users in 2023, or five times more than the United States.’
The COVID-19 pandemic was a major turning point for the sector. The country’s cryptocurrency market gained traction during the pandemic, mostly due to poor financial infrastructure.
The number of crypto users is set to increase by 760% to 134 million between 2017 and 2022.
India accounts for most crypto users
The team told BeInCrypto,
“With 156 million people using digital coins in 2023, India will have three times more crypto users than the United States, Japan, the United Kingdom and Russia combined.”
Overall, global crypto users are projected to grow to 293 million, an increase from 257M users in 2022. No doubt, India will play an important role. The US accounts for less than 10% of the global crypto user count, and that number could potentially drop further amid increased scrutiny from regulatory watchdogs.
Finally, India has seen a significant increase in crypto investors over the past six years, driven by the rise of fintech, mobile technology adoption, and the growing popularity of digital payments. While the government has historically been hostile to cryptocurrencies, there are signs that it is becoming more open to the sector. As the Indian economy develops, cryptocurrencies will play an increasingly important role in the financial ecosystem.
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