Cryptocurrency provides a solution to India's underlying problems. The digital currency can be used to move money inexpensively across borders within a matter of minutes without ever having a bank account. It’s important to note that lately bitcoin adoption is taking over its network capacity, leading to delay in transactions and very high fees.
India with a population of around 1.3 billion out of which millions are there who don’t even have the bank accounts and despite of numerous campaigns run by our honourable PM Mr. Narendra Modi, Indians still lack the energy to compete the world in terms of technology adoption.
Ironically, India has one of the largest remittance markets in the world with a total value of close to $70 billion. On every transaction, an average user pays up to 15% in bank charges and conversion fees, huge figures right? But after the demonetization something dramatic happened, bitcoin price elevated like hell. Now you must me thinking that how did it happen?
Yes, people invested in the cryptocurrencies like bitcoin, neo, etc. over the 11 months of demonetization implementation. This took the prices to an unimaginable level. Indians now have a realisation that hoarding the currency is not going to help rather investing in the cryptocurrencies surely is giving them huge returns.
Now coming to the question raised above that how India can multiply the Bitcoin transactions in coming years. The BTC utilisation to buy Indian cryptocurrencies is growing and if you analyse the market, the current running ICOs, etc. which tells that foreign cryptocurrencies are being invested in place of local currency directly. This is considered to be quite safe and indeed it is.
We’ve the example of Indicoin for which the investors are coming from all over the world and investing with BTC, LTC, etc. The record sale of Indicoins in the presale and again the accelerated growth in the ICO definitely put up a strong point that using bitcoin to buy the Indicoin or any other is going to increase the transactions exponentially. Local reports from India hint at government is already in the process of preparing norms for the regulation of virtual currencies. All signs point toward the government legalizing and taxing bitcoin and other virtual currencies. A ban on cryptocurrencies like Indicoin or Bitcoin is highly unlikely and would be counter-productive to government’s own “go cashless” agenda. The digital wallets are pretty convenient and the availability of money at any point of time is pretty convincing for the people to adopt cryptocurrencies.
We’ve another example of Zebpay which is one of the Indian wallet exchanges. Zebpay has been in the market for quite a long time and without any government regulations it existed and won the trust of the people. The exchange allows to do transactions over its platform and this again burgeoned the bitcoin transactions in India.
The projects like Bitcoin, Indicoin, Zebpay, UnoCoin are going to provide a cutting edge to blockchain technology in India and also as these projects accept foreign cryptocurrencies so the transactions will be augmented.
The Indian government is in the midst of deciding whether or not to regulate cryptocurrencies. The regulations would not be able to decline the transactions at all because this cryptocurrency-mania is unstoppable. So the cap is not going to be limited, it will multiply into hundred folds in the coming years.