2021 has been a very exciting year for cryptocurrency in India. This year, the industry of crypto saw Bitcoin making new record prices as well as major corporate buy-ins by mainstream businesses. Crypto is now becoming a major part of the pop culture and has Elon Musk emerging as one of its most popular faces. India has taken a step closer to creating a favorable regulation of the crypto market as well as the overall Indian population’s interest in cryptocurrency has risen dramatically.
Developments in the Year 2021
After when the RBI lifted the ban on crypto in March of 2020 Indian cryptocurrency exchanges observed a rise in registrations of users and daily trading volume, and this continued to increase in 2021. WazirX is now serving a user base of 10 million, and has traded over $33 billion in 2021 (up by 1735 percent from 2020).
In this case despite the inconsistency regarding the regulation of crypto in India as well as the price volatility that cryptos have experienced in the past few months, India increased to be the second-highest adoption rate worldwide, second only after Vietnam.
In addition to other developments in cryptocurrency in the last calendar year Bitcoin remains to be the leading crypto in terms of the market capitalization in 2021, has risen by 50% from the start in the calendar year.
Regarding the legal status of cryptocurrency in India however, while an act to ban ‘private cryptocurrencies was scheduled to be presented in the Parliament’s Budget session in February 2021, the bill didn’t get a chance to be passed. But, it appears that the Indian government is scheduled to introduce the ‘The Cryptocurrency regulation and the Official digital currency bill 2021’ to Parliament in the Winter Session, which is currently taking place. There is a good chance that it’ll introduce crucial positive rules.
The Finance Minister Nirmala Sitharaman has recently stated that a brand new crypto bill is expected to be discussed in the House following approval from Cabinet. The bill is expected to effectively regulate the cryptocurrency market in India and also allow trading and investments in crypto with reasonable limits for issues such as risk management, investor protection.
In addition, an NASSCOM-backed study of the “CryptoTech industry in India indicates that more than 300 Indian startups are operating in the CryptoTech area, with support from more than 15 million private investors. With India being close to having its own CBDC (central digital currency of banks), CBDC, Bitcoin Smart Contracts, smart contracts DeFi, also known as tokenization, decentralized finance, the ever-growing popularity of CryptoTech capital and NFTs are the seven main factors that are that are driving the development in CryptoTech within India.
The study also states the market for cryptocurrency in India is predicted to grow exponentially faster and increase 241 million dollars by the year 2030. Furthermore is that the Indian cryptocurrency market is expected to bring an economic value-addition of $184 billion in investment and cost savings. Furthermore, it could create nearly 8 lakh jobs by 2030.
Expected Trends in the Year 2022
In 2022, we anticipate to see new solutions that will improve
Blockchains decentralised are less expensive, faster as well as scalable and durable. However, what is more fascinating are the developments which are not often noticed. For instance, even though Bitcoin dominance might be decreasing and triggering a variety of projections (in every direction) by experts in the field, did you realize that the dominance of Bitcoin in trading volume is decreasing as well? A greater portion of the market is looking at top-quality projects like Ethereum, Solana etc than ever before.
As we see growing interest in the crypto space as we continue to see increasing interest in the space, we will also begin to witness the clarity in regulation that we’ve always sought. The Prime Minister of India himself is calling for regulation of crypto, and we anticipate definitive, positive action on this issue in 2022.
This could be followed by increasing institution-wide adoption – something that is currently at
extremely high levels at an alarmingly high level West at this point in the past few years of industry. Indian establishments are anticipated to soon adopt the same pattern.
It could also be the largest trend to be watching in 2022: the expansion of the metaverse, the digital world that made its presence felt in the last year. We can expect more people to be spending on the other side of space, making NFTs as well as developing DeFi and playing in GameFi platforms.
So, after an amazing year, anticipate cryptocurrency to be a part as the most exciting creative, lucrative, and profitable sector located in India by 2022. I am convinced that we can affirm this for all stakeholders : established brands, emerging projects consumers, even the government!