The Indian cryptocurrency industry has been booming lately, despite the lack of regulatory clarity on the national level. In fact, this is only expected to grow over time.
In fact, according to a research report compiled by NASSCOM and WazirX, the country’s crypto-tech industry could hit $241 million by 2030 and $2.3 billion by 2026 globally.
According to Debjani Ghosh, President of NASSCOM,
“Crypto-tech industry in India has not only demonstrated a positive impact at the grassroots levels, but is emerging as one of the fastest growing technology sub-sector.”
“India provides the most unique ecosystem to cryptotech to play a transformative role in strengthening key priority areas such as healthcare, safety, digital identification, trade and finance, and remittances and help in addressing pandemic-induced challenges.”
With Bitcoin’s price hitting a new ATH a few months ago, the rise in crypto-adoption is not shocking. However, the rising interest of banks in crypto has been astonishing. Banks around the world are getting comfortable about investing in crypto, with a few in the U.S, Europe, and Asia creating blockchain-based systems to enable B2B cryptocurrency payments between their customers.
Alas, the same hasn’t been true for Indian banks, with the same acting on the warnings/advice of the central bank to stay away from crypto-payments.
Nevertheless, the report touched upon the massive potential the field has for India, especially with the youth increasingly participating in this newer investment option.
Bitcoin, Ethereum, and MATIC are among the most sought-after by this growing investment group, with an eye on high profits by investing small amounts. The ability to buy a portion of cryptocurrencies with a sum comfortable to the investor has been one of the luring factors.
What’s more, the report found that nearly 60% of states in India have emerged as crypto-tech adopters with over 15 million retail investors. This has given way to more crypto-startups popping up. Currently, over 230 startups are already operating in the country. With more businesses coming in, India can be expected to grow two times faster and with the potential to create over 800,000 jobs by 2030.
It also has the potential to create an economic value addition of $184 billion in the form of investments and cost savings, it added.
These numbers offer an insight into the crypto-industry’s potential to strengthen the country’s economy through innovation and job creation. However, it is only possible when the government and the central bank work together to clarify existing regulations without stifling innovation.
According to Ghosh,
“A consultative and enabling regulatory approach towards crypto technologies can help drive the growth of cryptotech ecosystem and innovation in India.”