The future of cryptocurrencies in India seems to be bright. In the Indian economy cryptocurrency seems to have become the new buzzword. Many start up firms have cropped up and many citizens are already trading in crypto coins. These indications are a healthy sign that India is gradually becoming a favorable market for the cryptocurrencies. Moreover, it is difficult for crypto investors and enthusiasts to ignore India since it is the world’s fifth largest economy.
Cryptocurrency Related Statistical Facts of The India Economy
India is the fifth largest economy in the world and has GDP worth $3942 billion. This invariably proves that the country is a robust economy and has plenty of spaces for the cryptocurrency market to thrive. As per statisa.com, the revenue in the cryptocurrencies market is projected to reach over $343.5 million in 2024. The annual growth rate (CAGR 2024-2028) is around 7.99%. The total project amount is estimated to be around $467.2 million by 2028. The market itself is expected to boom as the number of users may rise up to 328 million by 2028. India also has witnessed high levels of user penetration that can also positively affect the crypto market. The penetration currently is 18.66% while it is expected to hit 22.04% by 2028.
Impact of Cryptocurrencies on Indian Economy
The Indian economy is growing at a much faster pace than most developed Western economies. Therefore, cryptocurrencies are making a widespread impact and have enough potential to emerge as one of the strongest markets of the crypto world.
FinTech Sector Will Benefit
The continuous growth of the cryptocurrency market will have a positive impact on the booming FinTech sector of India. The Indian economy already has a strong base of IT professionals and there are numerous financial institutions and opportunities. Cryptocurrencies can well emerge as the best alternative to the centralized financial system and the fintech sector can play a decisive role in that journey.
Digital Payments Will Enhance
Cryptocurrency transactions will help in saving time and money. It will help the robust retail business sector in India. There are many exchange platforms that have less transaction charges levied by intermediaries, banks and payment gateway. Digital payments will improve the speed and efficacy of many business organizations which in turn can boost profitability. Moreover, cryptocurrencies do not recognize territorial borders and therefore may provide more global opportunities for business organizations.
Popular Crypto Assets in India
The crypto assets in India are a testimony to the fact that currently the Indian economy is favorable for crypto assets. In 2023, Dogecoin, was the most popular cryptocurrency and it accounts for 11% total investments. Bitcoin and Ethereum are the second and third largest crypto assets at 8.5% and 6.4% respectively. From January to February 2024, the crypto deposits saw an 80% increase as per Forbes.com. The new start up ventures experienced a 200% surge during the same period. Cardano, Solana, and Ethereum have a large market capitalization and offer an annual yield of 4-5% and around 10% of Ethereum is staked.
Also Read- Privacy Coins And Their Significance in The Crypto World
Bottom Line
The Indian economy is undoubtedly favorable for the growth of the cryptocurrency sector. However, the attitude of the Indian government towards decentralized finance is still ambivalent. Proper crypto regulations marks a paradigm shift in the earlier hostile attitude of governments and central banks. The statistical facts also clearly indicate that the market is growing well and it is a matter of time that cryptocurrencies will emerge as a viable alternative to most traditional financial systems.
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