As cryptocurrency is gaining popularity in India, Do you think it’ll be accepted as a payment mode in India Soon?

In concerns of cryptocurrency expert advisors, Asian nations are outperforming the majority of the world. As per a recent study by market research company Finder, Asia has the top five countries regarding bitcoin ownership. The majority of them are majorly irrelevant in the bitcoin business. However, recent research contradicts this, and now it captures a large area in the market.

As cryptocurrency is gaining popularity in India, Do you think it’ll be accepted as a payment mode in India Soon?

Vietnam had the most significant proportion of cryptocurrency holdings. In that order, in Asia, at 40%, trailed by Indonesia, India, Malaysia, and the Philippines. Thirty percent of those questioned in Indonesia and India said they owned cryptocurrencies. As per certified cryptocurrency experts, India also came in second place in a survey of countries that use cryptocurrencies the most. Around nine percent of total individuals claiming to have used cryptocurrency. Furthermore, a maximum of eight percent in the United States uses cryptocurrency. Even in the United Kingdom, only nine percent of people are crypto owners. This figure seems to have a minuscule percentage of cryptocurrency holders.

Is it affecting Businesses?

There has also been a significant surge in small traders. This happened just after Supreme Court overturned the RBI’s restriction on crypto trading. Since June 2020, the CoinSwitch Kuber has become India’s largest cryptocurrency service. Now it has onboarded almost 8 million members.

Banks are welcoming crypto exchanges.

Leading banks such as -

  • Punjab National Bank
  • Union Bank of India
  • Industrial Development Bank of India
  • Deutsche Bank
  • Federal Bank

There are even more banks that have also been identified as suitable for net banking by WazirX.

According to cryptocurrency expert advisors, this contrasts with an unofficial warning from India’s Central Bank. The Reserve Bank of India was also on the list when Indian banks ceased trading with exchangers in May. Many banks began closing crypto exchange facilities almost immediately. And after that, many of them have to stop accepting rupee payments from their customers.

Banks Closing the doors to Crypto:

In addition, on May 31, a handful of Indian banks released a notice to their customers. This was to advise certified cryptocurrency experts not to engage with cryptocurrency companies. Investors were also warned that cryptocurrency activities were not authorized. This was written in a statement from HDFC Bank, Leading India’s private bank. This bank also cited a 2018 statement from the Reserve Bank of India prohibiting such transactions. As a result, banks’ connections with cryptocurrency exchanges have sparked considerable alarm. In May 2020, the Supreme Court of India overturned the RBI notice referenced by HDFC Bank and many others.

The crypto sector applauded the Supreme Court’s ruling. This allowed it to profit from the late-year bull market in cryptocurrencies such as Bitcoin and Ethereum.

On May 31, the Reserve Bank of India released a notification canceling the letters submitted by these institutions. The decision by banks follows a letter from India’s national bank, the RBI. According to Sharan Nair, who is the chief business officer of CoinSwitch, Kuber also agreed. CoinSwitc Kuber is one of the four largest crypto tradings in India.

Is everything back to normal?

Matters aren’t quite back on the right path yet, though. They provide Indian investors with various payment options, including NEFT, IMPS, Paytm UPI, UPI, and RTGS. They also enable customers to purchase and sell bitcoin utilizing their credit or debit cards. However, most of these operations are even denied by credit and debit card companies. This was stated by Jay Hao, who is the Chief Executive Officer of cryptocurrency trade OKEx.com, informed ET. In India, cryptocurrency transactions can employ various payment methods, namely RTGS, Net Banking, and UPI. The financial institutions have authority over online banking plus RTGS. But they do not influence UPI, the administration’s money transfer network. Users can utilize UPI to transfer money on platforms. But this can be possible as long as banks permit crypto businesses to have savings accounts in their facilities.

Younger folks are leading the way.

When it concerns bitcoin adoption, one pattern that has been persistent throughout the world is younger generations. The youngsters are spearheading the push. As per Finders, youth adults around the ages of eighteen to thirty-four account for more than forty percent of all users worldwide.

One of the primary causes for this is the rise of crypto-based firms like CoinSwitch Kuber. And due to this, crypto investments are made simple and affordable to ordinary people. The user community was likewise composed mainly of individuals. Ages like thirty-five to forty-four, with around seventeen percent belonging to all those aged around forty-five to fifty-four. In countries like Colombia and the Netherlands, the crypto uptake is found chiefly among seniors over sixty-five.

Towns and villages in India are pushing implementation:

In the latest days, small towns and villages in India have been at the frontline of cryptocurrency uptake. On the CoinSwitch Kuber application, user memberships from Tier 2 and 3 regions have increased by almost 2000 percent.

What do Experts have to say?

According to cryptocurrency experts, the global acceptance of the cryptocurrency industry increased by over 880 percent. They achieved this number from June 2020 to June 2021 with over 15.1 million crypto subscribers in India. In India’s crypto market industry, there seems to be a burst of activity suddenly. The administration focuses on legislation and entrepreneurs investing capital into crypto businesses. CoinSwitch Kuber has secured $26 million in a Series B round. This was mainly achieved by Tiger Global, a VC firm with a $550 million value.

Conclusion

The cryptocurrency market does have some positive information too. The administrative bodies have announced some news. They said they would consciously study the implementation of crypto’s blockchain platform. They will do this just to bring in the digitized economy. So rather than simply banning cryptocurrencies, the Government of India could set strict restrictions and regulations.

For the time being, India’s reaction to cryptocurrency has mainly been positive. It is evident that bitcoin has a marketplace in the nation, and that sector is rapidly expanding.

Blockchain Enthusiast and Result-oriented Technology expert with 10 years’ experience in education & technology roles.