India is currently on the forefront of witnessing the emergence of innovative technologies. Crypto and blockchain are the two frontrunners gaining widespread attention. Though these technologies have been in the market for quite some time now, they only started to gain traction in the last few years. The bull run in 2021 was driven by some financial giants entering the market.
Cryptocurrencies, built on blockchain technology, have slowly started emerging as a new investment class. Many of today’s youth are turning towards this to attain financial freedom. With increasing awareness and adoption day by day, more people are keen on investing in crypto.
As the financial industry is evolving, new investors have started to try their hands in cryptos. On the flip side, some people are skeptical of entering the market due to volatility. However, with increasing adoption, the volatility will likely decrease in the coming years.
What the future of India’s crypto and blockchain sector looks like
When we look at conventional financial transactions, there are several intermediaries besides the payee. But financial transactions using crypto can occur without interference from any third party.
As crypto is decentralised in nature, it is accessible to users across the globe. The whole process of transaction occurs on a blockchain where all the records are stored in a code to ensure transparency. With the help of the underlying blockchain, the sender and receivers can make financial transactions much more safely and cost-effectively.
As per a United Nations Trade and Development (UNTAD) report in 2021, India has more than 7 percent of the population owning digital assets in the form of cryptos. With more people holding crypto assets, the coming years can even see crypto banks emerging in the country.
Even though these kinds of banks might sound new, they can let people keep, buy, and sell their crypto holdings alongside a regular bank account.
As many big companies have already started to accept payments in crypto, the step will give a push to the digital payment industry across the globe. This will motivate the lower- and middle-income population to trade and make payments in crypto worldwide.
With initiatives such as Digital India and e-governance for economic resilience, India can lead by making friendly policies around technologies such as crypto, blockchain, and Web3.
After the Indian government clarified the taxation on crypto assets in the Union Budget this year, the industry's morale has been boosted. As crypto is still in its nascent stage globally, India has the best chance to develop a robust policy benefiting the digital revolution. The move would also open up more resources for newbies and existing professionals, thus offering tremendous job opportunities in the near future.
India is one of the fastest-growing crypto markets in the world. The acceptance of the digital currency system in India would be a prudent move, considering the pace at which the financial system is revolutionising. The country has a vast technical talent, which could drive the country to emerge as a crypto and blockchain hub.
(The author is the CEO and co-founder of Mudrex, a global crypto investing company.)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.