From a small group of developers to a trillion-dollar global economy, crypto has come so far. Indians have a love and hate relationship with it though. Some find it a revolutionary technology, some think it's a scam and some are not sure but they are open to experimentation. That's the case with most countries except a few but overall the world will adopt it gradually. Crypto's future within India seems uncertain as of now and there hasn't been much progress done to regulate the sector. In this blog, I will discuss what Indians think about cryptocurrency as of today and how they are getting involved within the space.
Citizens
Normal citizens of the country can be classified in these four categories w.r.t their interest and exposure to crypto:
- Pro-Crypto: These people have understood the value this technology can offer. The young population of the country especially from technical backgrounds is finding it to be a pathway towards unlimited opportunities. They are growing in number despite RBI's (Reserve Bank of India) ban attempts and warnings.
- Pre-Crypto: These people are confused but they are already aware of Bitcoin, Ethereum, Blockchain, and Crypto. Sooner or later, they will either adopt crypto or remain confused about what to do. A decent chunk of our internet population falls into this category.
- Anti-Crypto: This group is totally against crypto and consists of a small number, especially bankers. They are mostly unaware of what's actually going on or have a bad experience with their investments.
- Zero Exposure: India will have over a billion internet users by 2030. Right now most people do not know anything about crypto & web3. They have zero exposure to this space and hence they fall into this category.
RBI
The central bank of India responsible for governing financial systems in India aka Reserve Bank of India is anti-crypto. Time and again they have expressed views and tried to convince the government for the outright ban.
According to them, any private cryptocurrency is a threat to the country and it poses risks to the economy of the country. Little did they know that Bitcoin is not private crypto but public money controlled by no one.
RBI governor Shaktikanta Das thinks cryptos have no underlying value and since there is a level of volatility, they are unfit to be used as currency. According to him, it's all speculation and gambling.
In 2018, RBI banned banks from supporting cryptocurrency exchanges which was lifted by the Supreme court of India in 2020. They have also published various circulars warning customers and exchanges dealing with virtual digital assets. At the same time, RBI has created a committee to work on CBDC that will represent India National Rupee (INR). Confused much? xD
NPCI (National Payments Corporation of India) controlled by RBI also restricted UPI payments going to Crypto exchanges. We now have taxation laws against crypto that makes it legal to invest and hold but RBI is trying to bully the sector by playing cheap tactics.
Government of India
The government of India is unclear about how they want to regulate crypto. Our politicians are not able to make a conclusive decision and looking up to the governments and financial bodies of other nations. It's like they are waiting for someone else to tell them what to do. For now GOI does not consider cryptocurrencies as legal tender or currency and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system. They still think it's a risky play.
At the same time, they have shown their willingness to explore the use of blockchain technology proactively yet they did do anything substantial yet. Confused much? xD
Conclusion
By delaying regulation, India is losing on a big opportunity. Web3 is slowly eating the world and we do not want to be the last one eaten. Crypto is regulated globally and we must not miss all of its benefits. Otherwise, we are at a huge risk of brain drain which we are in no position to afford. Crypto has the potential to create jobs and grow the economy. Once it gets regulated, more investors and talent will flow creating a snowball effect. GOI's rethinking approach and wait-n-watch attitude won't work for long. They have to decide & act quickly because the boat is leaving the dock.
