2021 has been an important year for crypto in India. Over the past year, the cryptocurrency industry has seen bitcoin hit several new all-time highs and major institutional buy-backs from mainstream companies. Crypto is still a part of pop culture, with Elon Musk becoming perhaps its most famous face. India has moved a step closer to a positive regulatory environment around its crypto markets, and the interest of the wider Indian population in crypto has skyrocketed.
growth in 2021
Since RBI withdrew crypto restrictions in March 2020, Indian crypto exchanges have seen an increase in user registrations and daily trading volumes, and this influx continued into 2021. WazirX now serves a user base of over 10 million, which generated over $43 billion in turnover. 2021 (up 1735 percent from 2020).
Case in point, despite the initial lack of clarity about crypto regulation in India and the volatility in the price of crypto over the past few months, India has reached the second highest crypto adoption rate in the world after Vietnam.
In other developments for crypto over the past year, bitcoin, which remains the top crypto by market cap in 2021, has gained more than 50 percent since the start of the year.
As for the legal status of crypto in India, while a bill banning ‘private cryptocurrencies’ was to be introduced in the budget session of the Parliament in February 2021, that bill did not come up till the end. However, now the Government of India is about to introduce ‘The Cryptocurrency and Regulation of Official Digital Currency Bill 2021’ in the Parliament during the ongoing winter session. And all indications are that it will bring much-needed positive rule.
Finance Minister Nirmala Sitharaman recently said that a new crypto bill will be brought in the house after approval from the cabinet. The bill is expected to positively regulate crypto markets in India, and allow crypto investments and trades with appropriate restrictions for aspects such as risk management and investor protection.
Meanwhile, as a NASSCOM backed study on “Cryptotech Industry in India”; Suggestion, over 230 Indian start-ups are already operating within the cryptotech space, with the backing of over 15 million retail investors. India reportedly has its own CBDC (central bank digital currency), CBDC, bitcoin, smart contracts, DeFi or decentralized finance, tokenization, continued growth of cryptotech capital, and NFTs are the seven major factors driving the growth. Cryptotech’s in India.
As further stated in the study, the crypto market in India is expected to grow twice as fast and reach $241 million by 2030. What’s more, the Indian crypto market has the potential to generate economic value addition of $184 billion in investment and cost savings. , and it stands to create over eight lakh jobs by 2030.
Expected trends in the year 2022
In the year 2022, we expect more solutions to come which will
Decentralized blockchain is cheap, fast, scalable and sustainable. But perhaps more interesting are some of the trends that often go unnoticed. For example, while bitcoin dominance is undermining and prompting many projections (in all directions) of industry experts, did you know that bitcoin dominance in trading volume is also steadily declining? There is more interest than ever in the market with more and more quality projects like Ethereum, Solana etc.
As we see increasing interest in the space, we are also going to see the regulatory clarity that we have always wanted. The Prime Minister of India himself now calls for crypto regulation, and we expect decisive, affirmative action on this front in 2022.
This should be followed by increased institutional adoption – which is already there.
Extremely high standards in the West, over the lifetime of the industry. Indian institutions are expected to follow suit quickly.
And it will likely lead to the biggest trend to see in 2022 – the growth of the metaverse – the digital realm that made its presence felt strongly this year. Expect more and more of us to spend time in the metaverse, creating NFTs, working on DeFi, and playing on the GameFi platform.
In other words, after a stellar year, crypto is expected to retain its label of the most vibrant, lucrative and innovative sector in India in 2022. I believe we can say this for all stakeholders – established brands, new projects, consumers, and the government too!
Disclaimer: Nischal Shetty is the founder of WazirX. The views expressed in this article are those of the author and do not represent the stand of this publication.
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