Apart from the financial benefits for Indians, crypto represents a once-in-a-lifetime opportunity for India as a nation to make its imprint in the wider world of technology and finance
It is no secret that India is a crypto hotspot. After all, India consistently ranks first in terms of cryptocurrency trading volumes, and a number of creative crypto companies, such as WazirX, have set up shop in the country, allowing millions of Indians to profit from the industry while also remitting funds.
Apart from the financial benefits for Indians, crypto represents a once-in-a-lifetime opportunity for India as a nation to make its imprint in the wider world of technology and finance.
India’s Unique Opportunity
First and foremost, it should be recognised that the use of a deflationary asset such as cryptocurrency, particularly top tokens like bitcoin, has never been ubiquitous. Bitcoin’s supply is limited to 21 million units and cannot be expanded. India may take advantage of this particular shortage if it can utilise and comprehend it.
[box type=”success” align=”” class=”” width=””]Then there’s the sheer size of the industry’s expansion. It took roughly 8 years for Bitcoin, one of the first cryptos, to gain mainstream acceptance. In less than three years, DeFi, a popular usage of blockchain to provide financial services, and NFTs, a digital means of asset ownership verification and transfer, have gained significant adoption, with over $200 billion locked on DeFi (Decentralized Finance) global platforms. [/box]
DeFi has seen the kind of uptake and financial investment that traditional banks would envy. The area is expanding at an unprecedented rate, and if India takes advantage of it now, it will be able to establish itself as a leader in the DeFi space and reap the benefits.
The simplest way to accomplish this would be to promote crypto legislation that safeguards the public while also fostering innovation. India has made the error of enacting an anti-crypto legislation in the past, most notably the RBI’s prohibition on crypto businesses acquiring banking services. As a result, some cryptocurrency companies have shut down or relocated their operations out of India.
Now, we must do the exact opposite and enact legislation that will attract crypto businesses and allow them to develop while also laying the foundation for further expansion. The industry represents immense potential not only in terms of benefitting our economy, but also uplifting our entire tech ecosystem with blockchain technology.
The Inevitable Revolution of Adoption
One of the reasons for the rapid growth of blockchain adoption is the democratised power it provides to consumers. For example, take social media sites that are fueled by content providers that keep these networks exciting to revisit.
The platforms, on the other hand, keep the majority of the advertising revenue, leaving relatively little for the creators. Decentralized social media platforms, on the other hand, eliminate the middleman’s power and allow producers greater control over the cash they generate.
India, which is primarily reliant on its agriculture industry, can benefit greatly from this theory and method. The bitcoin business also addresses nepotism, as this democratisation of power opens up a world of possibilities for those without a lot of money or connections.
[box type=”warning” align=”” class=”” width=””]It is crucial that we acknowledge that if India does not make any effort to adopt cryptocurrencies, it will be lagging behind in the modern-day tech race. The industry is experiencing global recognition and adoption and has gone from a novel concept to one that is deemed a necessity. Those that are yet to accept cryptocurrencies are considered to be at a technological disadvantage. [/box]
With the crypto bill that is set to go before the courts, India has already taken some moves in this direction. However, our regulators could take it a step further by getting involved in the cryptocurrency market. If you don’t, you’ll end up with a lot of laws that seem excellent in theory but aren’t always practical.
And, given the country’s growing acceptance of Bitcoin and cryptocurrencies in general, there is no time for trial and error, and it must act quickly. Even institutions like JP Morgan, which had previously criticised cryptocurrencies, are now using it on a large basis and have developed their own stablecoin.
To conclude, India has a massive consumer market for crypto, a booming IT sector, and a forward-thinking population that stands to benefit from the emerging asset class. If our government opts for an innovative and open-minded approach, working alongside the booming Indian crypto community, we will definitely succeed in our quest to foster innovation and put India at the centre stage of the global financial revolution.
This article is authored by Nischal Shetty, CEO WazirX
