Cryptocurrency State in India
Cryptocurrency Adoption in India
Cryptocurrency is upon us. The smartest people in the universe starting to work on its application and implications. It is widely known in the whole world now and India is starting to adopt it as well. India has been viewed as a significant possible user of cryptocurrency because the majority of Indian population is unbanked. Bitcoin, as the most popular cryptocurrency is what India will adopt and the top methods of obtaining it are through participating in an exchange or buying one, accepting bitcoin as a payment for goods and services is another one and of course, they can always mine for a new one. To date, the bitcoin value is 1 = Rs44,254.66.
Cryptocurrency Supply and Demand
India has experienced a huge demand since the industry of mining is weaker compared to the other part of the world. Since bitcoin has a lack of supply, there are times that the price goes up to 3 to 4 percent, more than the global exchanges like BTC-E or Bitstamp. What is needed today is to build a strong industry of Bitcoin in India to bridge the gap between the demand and supply and avoid users from depending on global sources. As we all know Bitcoin supply is limited to 21M units and more or less 15M are already circulating, according to the reports. This Mid-2016 Bitcoin Halving has a huge impact on the miners.
Cryptocurrency Legality in India
Bitcoin and other cryptocurrency are not illegal in India, this is according to Nishith Desai Associates founder. Even though, the Reserve Bank of India Deputy Governor had ruled out the adoption of the said digital currency in 2013, and added a statement that RBI has no intention in regulating it. However, the governor of the RBI, Raghuram Rajan said that these digital currencies will be a big help in the cashless society transition. As of now, cryptocurrency regulatory in India is unclear, but one thing is certain, the future is smiling for the cryptocurrency.
The digital currency is beneficial in India due to the fact that they were the world’s highest remittance recipient last year, this is according to the annual report of the World Bank. The country receives more than $70 billion as the highest remittance transaction and the lowest is $200. People are paying for a 15% fee on these amounts to the banks or to other third party financial institutions. With blockchain technology, the people who remit can save up to $7 billion. This is a huge amount of savings.
Although, India shows a slow beginning in digital currencies, banks already recognize the advantages of Bitcoin. An analyst states that Bitcoin trading has matured rapidly at an estimated Rs500 crore/year, with Bitcoin wallets that is about 50,000 and more than 800 of Bitcoins operated daily.
The bitcoin trade in the global market is rising and reached $35 billion/month last December, 2015. Some billion-dollar companies that are accepting bitcoin on their websites are Rakuten, Overstock, Expedia and Dell. According to Mohit Kalra, the Coinsecure CEO and founder, this year will mark a high usage of Bitcoin for international payment gateways, charitable donations and remittance.