Digital currency and its Global Acceptance: How does India react to the trend?
The world has been on a fast track when it comes to adoption of the crypto currencies. Major companies like Microsoft, Visa, IBM and Amazon etc have already started embracing digital asset, and global acceptance of Crypto currency is now a reality but where does India stand in this regard?
The year 2020
2020 has been a year that has brought forward many new perspectives of looking at life for mankind. The Coronavirus (COVID-19) broke out across the world which led to a global shut down and everyone got stuck at home. The great lockdown, as it is come to be known, put severe restrictions on the global economic activity which led to significant downfalls in financial markets around the globe.
The only good thing that has come out of this year is the recognition of cryptocurrencies. When the world got stuck at home, the only trading they could do was limited to online trading, the reigning king of which is undoubtedly Cryptocurrency. The world has quickly realized the need cryptocurrencies fulfil and the unlimited possibilities it offers; hence the adoption is much quicker.
Lockdown and Digital Currency:
The Indian Perspective
There is one major economy that is still on the fence about Cryptocurrency: India. The sphere of Cryptocurrency in India is shrouded in confusion. Cryptocurrencies are not exactly illegal in India but as there is yet no legal framework that might define cryptos, they are not legal either.
Last year, the Supreme Court of India quashed a circular of RBI from April 2018 which prevented banks from providing their services in support of cryptos and directed concerned parties to work out a legal framework for the same. That was a moment of celebration for crypto-enthusiasts across the world. Indian traders hoped to have a legal framework for cryptocurrencies soon after that but it seemed discouraging when The Union Budget 2021, showed negation with regards to Crypto.
Indian Industry and Digital Currency
For the time being, when the status of cryptocurrencies in India is still unclear many people are still showing interest in trading with digital currencies, and for a fact, the crypto/digital currency industry in India already became a million-dollar industry during ‘great lockdown’. Many industrial giants of India joined this league and TCS has shown its support in trading the cryptocurrencies as well. Major cryptocurrency exchanges of the world also offered their services in India by including INR in their payment and other options. This includes Binance, Huobi, Kucoin and Hitbtc etc.
What does UE’s MD want to say?
In other significant news, the cryptocurrency trading volume in India increased by over 400% during the nationwide lockdown. The daily trading volume in India revolved around approximately 10-20 million dollars during the lockdown period. Mr Parminder Singh, the founder and MD of United Exchange, has said that their company saw a massive increase in sign-ups during the pandemic lockdown.
The percentage of signups on the exchange has shown a significant increase of 3-4%. People have started to understand the importance and opportunities the internet has brought with its invention. UE’s (United Exchange) top management is of the viewpoint that, the economies of the world might witness a radical shift from fiat to the digital currency world as Digital has become the new ‘Normal’ of the society.
Conclusion- Digital Currencies
Needless to say, there has been a significant rise of interest in India about cryptocurrencies and it is not going to die out any time soon, only an ignorant person wouldn’t recognize the opportunities this promises to India. Cryptocurrencies can become a booming industry in India and theses can bring massive international investments and possibilities. Now is the time for India to take a step forward into the future with this technological advancement with the majority of Indians ready to embrace it.