Summary:
- Global cryptocurrency transaction volume is anticipated to reach approximately $43 billion in 2023, up 24% from $34.30 billion in the previous year.
- In 2023, India is expected to have over 156 million crypto users, five times more than the U.S.
- In 2023, India will account for more than half of all cryptocurrency users.
According to a report provided to BeInCrypto, the number of crypto users in India may surpass 150 million this year. India would then account for more than half of all cryptocurrency users worldwide.
What factors can accelerate this?
Despite the government’s historically unfavourable stance toward the industry, there has been a considerable increase in crypto investors in India over the past six years. The adoption of mobile technology, the rise of fintech, and the popularity of digital payments are just a few of the factors that have contributed to the expansion of cryptocurrencies in India.
India’s Potential for Using Crypto
The development of fintech is one of the main factors driving the growth of cryptocurrencies in India. Blockchain technology is being used more and more by fintech companies to develop cutting-edge financial goods and services. These businesses use cryptocurrency to facilitate peer-to-peer payments, international trade, and micro-payments. Cryptocurrencies are projected to become more significant in the financial ecosystem as fintech develops in India.
The increasing popularity of mobile technologies is another factor contributing to the growth of cryptocurrencies in India. With more than 1 billion smartphone users, India is the second-largest smartphone market in the world. As a result, there is a sizable user population that is accustomed to making digital payments and possesses the technology required to invest in cryptocurrencies. Also, the popularity of mobile wallets in India has made it simpler for individuals to conduct cryptocurrency transactions.
The emergence of cryptocurrencies in India is also being fueled by the rising acceptance of digital payments. Digital payments have increased as a result of the government’s efforts to transition to a cashless society. Mobile wallets and online payment systems are widely used by consumers to make purchases of products and services.
The convenience and security of digital transactions provided by cryptocurrencies are factors in their rising popularity.
Regulatory obstacles are on the way.
Despite the fact that cryptocurrencies are becoming more popular in India, the government has historically had second thoughts about the sector. A circular from the Reserve Bank of India (RBI) in 2018 prohibited banks from working with cryptocurrencies. This had an immediate effect since it caused a short decline in the value of cryptocurrencies in India. However, the ban was lifted by the Indian Supreme Court in March 2020, which sparked new interest in cryptocurrencies. Yet, the conflict is still making news in 2023.
Read more: India is considering regulating or prohibiting unbanked crypto, DeFi, and stablecoins
Indian authorities recently outlawed cryptocurrency sponsorships and advertising in the local women’s cricket league. This came after a prior prohibition for the men’s cricket Premier League, which was put in place back in 2022. Although the government hasn’t fully embraced cryptocurrencies, there are indications that it is opening up to the market.
Businesses would have to report any cryptocurrency investments under modifications to the Companies Act suggested by the Ministry of Corporate Affairs in 2021. As a result, it appears that the government is actively regulating cryptocurrencies and paying attention to their potential value.
The team at BitcoinCasinos.com provided BeInCrypto with a report that includes some eye-catching data to corroborate the story. Notwithstanding regulatory obstacles, the survey revealed that India has seen a rise in cryptocurrency usage over the past six years.
India may have over 150 million cryptocurrency users this year.
The usage of cryptocurrencies as a medium of exchange and a store of value has grown significantly in recent years, thanks to the market’s recent growth. Over $43 billion in transactions are anticipated to be accounted for globally. The increase from $34.3 billion last year is 24%.
Depending on market conditions, rates of adoption around the world, and legislative changes, the precise value of cryptocurrency transactions can change.
Taking this into account, the United States, the largest crypto market in the world, will account for more than half of that value. Notwithstanding these setbacks, the United States remains behind India in terms of cryptocurrency ownership. According to the study, there will be five times as many cryptocurrency users in India as there are in the United States by 2023 (approximately 156 million).
A major turning point for the region was the COVID-19 epidemic. Because of the country’s weak financial infrastructure, the cryptocurrency industry grew throughout the pandemic. From 2017 and 2022, the number of cryptocurrency users grew by 760%, reaching 134 million.
The majority of cryptocurrency users are from India.
The team said to BeInCrypto,
In 2023, India will have 156 million cryptocurrency users, which is three times as many as the combined populations of the US, Japan, the UK, and Russia.
Global cryptocurrency users are expected to increase to 293 million, up from 257 million users in 2022. India will unquestionably be essential. Less than 10% of all crypto users worldwide are in the United States, and this percentage may decline further as regulatory watchdogs tighten their scrutiny.
In conclusion, the growth of fintech, the use of mobile technology, and the rising acceptance of digital payments have all contributed to a significant rise in crypto investors in India over the past six years. Although the government has historically been against cryptocurrencies, there are indications that it is gradually reconsidering its approach. Cryptocurrencies are projected to become more significant as the Indian economies grow in the financial ecosystem.
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