India has been ranked second in terms of crypto adoption in the 2021 Global Crypto Adoption Index by blockchain data platform Chainalysis. The first position was claimed by Vietnam, while countries like the United States, United Kingdom, and China were behind India. The report that ranked 154 countries said that worldwide crypto adoption grew by 880 percent between June 2020 and July 2021. It grew by over 2,300 percent since the third quarter of 2019, it said.
This ranking was based on the total cryptocurrency received, the amount of the virtual currency moved in transactions under $10,000, and peer-to-peer (P2P) trade volume.
Finder, a US-based research platform, surveyed nearly 47,000 users worldwide, and 30 percent of those surveyed in India said that they owned crypto.
Finder’s report said Bitcoin is the most popular coin in India followed by Ripple, Ethereum, and Bitcoin Cash. The company also mentioned that India’s “huge expatriate population” makes it the world’s number one remittance recipient in the crypto space.
WazirX, the largest crypto exchange by trading volume in India, said last week that it had seen more than 2,648 percent growth in user sign-ups from Tier I and Tier II cities in India. This implies that crypto adoption in India has also been led by smaller towns in the country. WazirX has a claimed user base of 7.3 million users and said it has recorded more than $21.8 billion in trading volumes this year.
WazirX COO and co-founder Siddharth Menon said that in 2016-17 the crypto awareness in the country was really low. But now, even women from smaller cities have started investing in crypto and have knowledge of the industry.
The same kind of trend was observed by Coinswitch Kuber, India’s top crypto exchanges by trading volumes. The company said that it saw 135 percent growth in user sign-ups from smaller towns, and it made up 61 percent total business of exchanges. Sharan Nair, chief business officer of the company, said that trading volumes from these cities in the last six months amounted to nearly Rs 431 billion.
Unocoin recently launched a new feature that allows Bitcoin for purchase of vouchers of more than 90 well-known brands spanning across sectors including food, travel, jewellery, and lifestyle in India. This feature is likely to push crypto adoption in India.
India’s crypto market was triggered in March 2020 by an Supreme Court ruling that set aside the RBI’s April 2018, the rule, which banned banks and other finance companies from dealing in virtual currencies.
Following the ruling by Supreme Court, the country’s top exchanges started advertising and educating users about the asset class, which has become popular among the investors under the age of 25.
Chainalysis, Global Crypto Adoption Index, India, Cryptocurrency
First Published: IST