India is a young market and with so many opportunities, even though crypto is young it is not a new thing. It has been in the market for more than a decade and our exchange is already 7 years now.
To understand how the crypto market is unfolding in the Indian market, let us go through five areas:
1. Regulatory Issues -
Though cryptocurrencies are not illegal in India, it is still yet to be regulated by the government. The central bank of India, RBI did restrict the banks to support virtual currencies in 2018 and Unocoin as a part of association filed a petition in the Supreme Court. The SC ruled out the RBI decision last year March 2020. The government is yet to come up with a solution to regulate this asset class and we are hopeful that it will soon be regulated. The country cannot simply ignore a multi-trillion industry.
2. Technological front - Our country is fortunate that we have a sizable youth population that is mostly into technology, finance, management which are our assets. In recent years, we have seen a lot of technological progress be it in startups, corporations, and the government. Our technological advancements are reaching new heights. And this impacted positively in the crypto industry. Today, we see lots of crypto blockchain startups coming up and many of them have successful results. We even have an Indian-born cryptocurrency, Matic Network which is valued at more than $5 Billion. So, our young minds are excited and looking forward to building more blockchain crypto companies.
3. Changing Mindset - Our young populace is now realizing the importance of investing, and the covid19 pandemic has accelerated this further. We can see huge growth in the stock market, as well as the Indian crypto market, and the new age investors are mostly first-time income earners. These new groups of investors are risk-tolerant and global thinkers thereby they can hugely uplift the large scale of our economy.
4. Becoming a creator economy - India is always a service economy, our economy is run by providing services to foreign economies but this is changing. With the growth of crypto and blockchain, we are experiencing new groups of creators, entrepreneurs who are all creation-oriented. Instead of providing services, we are building our products with the help of blockchain technology.
5. New age advocacy - Today, people invest in stock or crypto after getting profits. They ask their family, friends, and relatives to invest so they can also gain profits and thereby pulling more people into the investment world. And they also went on to advocate about the technology and the industry which create a lot of impacts.
Though we are yet to get a clear regulatory guideline from the government, we are positive that the crypto industry will grow and impact India’s economy massively. The government must understand that this industry has nothing to do with threatening India security or India currency INR, but has to do with uplifting billions of Indians, providing better financial facilities, creating jobs, and catalyzing innovation and growth of the country.
The author, Sathvik Vishwanath, is CEO and Co-Founder at Unocoin. The views expressed are personal