There is a rapidly evolving digital landscape in India, and the country has seen a huge change in how its population deals with financial systems that have been in place for decades. Cash remains king for many in the country, particularly in rural areas, but a revolution is taking place in terms of digital payments. Perhaps the most notable part is the increasing interest and demand for cryptocurrency as an option to pay for goods.
With digital currencies such as Bitcoin and Ethereum blowing up all over the world, many in India are turning to them for everything from everyday shopping to increasing their investment portfolio. But why is a country that has relied on cash for so long now among the leaders in crypto adoption and what does it mean for India’s financial future?
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The appeal of cryptocurrencies
Financial freedom -The younger demographic in India is increasingly drawn to digital innovations such as cryptocurrencies. Gen Z and Millennials are perfectly adept at living a digital life and this has led to many of them looking at crypto as an exciting yet safe way to manage their finances in a digital world.
These generations also crave financial freedom like never before, and bypassing traditional institutions to keep more of their money for what they want to spend it on holds great appeal. Many shop online, while online gaming has also seen huge growth, with many players using crypto on sites found on the trusted askgamblers.com/online-casinos/countries/in/bonus, where they have the chance to make their money go even further. Many online casino sites are increasingly accepting crypto payments, and its global nature means those in India don’t have to miss out on any of the fun.
Low transaction costs and speed – Perhaps the biggest draw to crypto for consumers in India is the ability to transfer funds almost instantly and with minimal fees. Using traditional systems can be slow and expensive, with fees soon mounting up. This can come into even sharper focus for those trying to send or receive money internationally. Crypto allows users to send funds anywhere in the world quickly and at a far lower cost. This is beneficial to those with family abroad and for businesses working with international partners.
Access to the global financial system -The large, tech-savvy population in India is increasingly looking for options that connect them with the rest of the world. Crypto provides a solution for this while bypassing traditional financial institutions such as banks, access to which can be limited in rural parts of the country. Crypto’s availability to anyone with an internet connection certainly broadens the scope of financial inclusion.
The rise of digital payments
All of these reasons for the increased appetite for crypto have to be understood in terms of the wider rise of digital payments in India. The last few years have seen a huge growth in digital payments after the country’s government made a concerted effort in 2016 to place less reliance on cash. This accelerated people’s acceptance of things taken for granted in other parts of the world, such as mobile wallets and digital banking services.
This rise has come in tandem with the availability of mobile internet in the country. A major part of India’s population now has access to mobile phones and a data connection, making digital payment methods more accessible than ever and an easy option for many. But this shift has also led to more people looking for even more significant changes and ones that are possibly even safer.
This is where cryptocurrencies have established themselves as a viable option. Offering fast, low-cost international transactions thanks to cutting out the middlemen such as banks allows crypto to be more attractive than ever to an increasingly global nation, especially for businesses looking to save money any way they can.
India’s evolving regulations
There is obviously great potential for cryptocurrency in India but the regulations surrounding digital currencies as a whole still seem uncertain. The Indian government has previously expressed concern about the risks associated with crypto.
However, this stance has changed notably in more recent times. When the Reserve Bank of India lifted a ban on crypto exchanges in 2020, there was a massively renewed interest in cryptocurrency. Many businesses remain hesitant, however, as the government continues to drag its feet over what regulation of the crypto industry might look like, leading to plenty of uncertainty.
Nevertheless, the interest from businesses and consumers in wider crypto adoption remains high. Many observers in India believe the government will eventually bring in a framework that balances the needs of protecting consumers while encouraging innovation in the sector. More regulation could bring the confidence people need to take the plunge with crypto as an everyday payment method.
What next?
As things continue to evolve in India, there’s little doubt that the intrigue, interest and benefits of cryptocurrency are not going away soon. Low transaction costs, access to international markets and the speed of digital currencies make it an attractive proposition in an increasingly technological society.
The rise of crypto depends on sensible regulation to ensure that the benefits it can offer the population are embraced while offering protection to consumers and businesses alike to ensure a promising future.
