A recent report suggested that India is the 2nd country in terms of the scale of crypto adoption. And the first country is not the US, UK or China; it is Vietnam. There was various news regarding the crypto ban in India at the beginning of 2021 but all that has changed now. Even the government seems to be on board with this new form of currency. And very soon, we could see laws that push adoption to a further level. But why have Indians developed such a strong liking for cryptocurrency and are adopting it so fast? Let’s take a look.
India’s crypto adoption rates
The metric that was used to select the adoption position of different countries was the percentage of the population holding cryptocurrencies. While the US and UK had only 8-9% crypto holders, India had a staggering 30% population holding crypto. And that, combined with the fact that India has such a huge population, makes this percentage even more significant to the crypto industry. If you are wondering about Vietnam, they have a 40% adoption rate.
The reason for such a high adoption
One of the biggest barriers that were coming to crypto adoption was from banks. Many investors were receiving warnings that their accounts will be closed in case they transact in a crypto exchange. At the same time, money deposit services and portals were not working with exchanges properly. All of this was because of the RBI ban that happened in 2017, according to them. And this is why the RBI cleared out that crypto is not banned in India.
Another two major reasons why crypto has become popular in India is COVID and a younger audience. The pandemic pushed people to find alternative methods to earn money to support their family and crypto became a primary source for many. At the same time, Traders flocked to the market because of the huge volatility while investors saw the long term opportunity.
A younger generation is also the reason for this adoption. I will give you a very good example of this. A few days back, I met my Maternal uncle and found out he has a huge stash in crypto. But he didn’t have any idea about it, and the entire portfolio is managed by his kid, who is in class 11 right now. This clears up why India sees such a fast crypto adoption rate. Young people have been more receptive to this new form of currency. And once the government starts using blockchain and crypto, India could become the number 1 country to embrace this new technology.
What are your thoughts on the fact Indians are adopting cryptocurrency at such a fast rate? And do you think we could soon be at the top? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.