Will Digital Currencies Ensure India's Future Growth?

Over many years, we've witnessed India rapidly rising and moving up the ladder towards becoming a technical giant, as it acknowledges and incorporates digital asset improvements at a global level. The establishment of the Unified Payments Interface (UPI) is responsible for the drastic shift towards the use of digital payments platforms in India, propelling the country's digital economy forward.

Bitcoin, Ethereum, as well as other digital assets, have earned a lot of interest in India and throughout the world because of the uncertainty surrounding Covid-19. Many people believe that cryptocurrencies are the way of the future. In the absence of restrictions, however, cryptocurrencies have been relegated to a speculative asset class with high volatility. The immediate real-time payment system showed a triple growth in value and quantity of transactions in the previous fiscal year, with 2,732 million transactions valued at 5,04,886 crore as of March 2021. With India's almost 1.4 billion people and being one of the world's fastest developing countries, our country has a great chance to profit from the rapid ascent of cryptocurrencies and digital assets.

From the tumultuous journey of Bitcoin, Ethereum, Dogecoin, Shiba Inu, and other crypto currencies to the global NFT craze, crypto news has been in the news on a regular basis. However, the road has not been smooth, and the future of the crypto business, in general, appears to be questionable. While El Salvador became the first country to legalize Bitcoin in 2021, and two more countries are set to do so in 2022, many governments remain cautious about cryptocurrencies, and several have either imposed limitations or explicitly declared the digital currencies illegal. Many countries like China, Bangladesh, Russia, Egypt, Morocco, Nigeria, Bolivia, Qatar, Turkey, Algeria, Iraq, and North Macedonia have not yet given their approval for digital asset transactions

In the Crypto Crime Report 2022, Chainalysis revealed the main dangers to cryptocurrencies in the form of frauds that took place in 2021. Chainalysis described the increase in scams in 2021 compared to 2020 in a preview of its Crypto Crime report. The report was released on December 16, 2021,

According to the survey, scams were determined to be the most common type of crypto currency-based crime by transaction volume, with over $7.7 billion worth of crypto currencies taken from victims globally.

But India's cryptocurrency industry has risen at an exponential rate in recent years. There is presently no legislation in place to oversee or control cryptocurrency trading in the nation. In India, it is legal to buy, sell, or trade digital currencies, as well as to establish a cryptocurrency exchange. The government may levy a tax on Indians who trade in cryptocurrencies if they are not barred from doing so. Beyond a certain threshold, the government may consider levying TDS (tax deducted at source) and TCS (tax collected at source) on the sale and purchase of cryptocurrencies. If this happens, the government will be able to identify and trace the investors. The way trading companies register the buying and selling of mutual funds and shares, similarly buying and selling crypto currencies, might be subject to reporting in the Statement of Financial Transactions (SFT).

The Future Ahead…

Only 15 million Indians are aware of cryptocurrencies, considering the country's 622 million internet users in Iindia, implying that there is still a lot of room for development in the percentage of crypto buyers and sellers. Virtual currencies have the ability to revolutionize the way we engage in the world financial system, resulting in greater inclusiveness and economic development, just like the technology has profoundly changed the way people have worked and business is conducted.

The country is apt to participate in the next major breakthrough of technological developments and innovations, fostering the economic opportunities it provides while ensuring confidentiality and sustainability. As corporate interest in virtual currency grows, tapping into India's young and digitally savvy population will reinforce investors' confidence and pave the way for a new era of prosperity.

Increasing opportunities….

As the market's knowledge and excitement in crypto currencies grows, we're witnessing a plethora of employment and career options that this sector has generated. This expanding demand for digital currencies is evident in the fierce intense competition for human capital and the increasing number of job openings in the field – a fast search reveals over 2,000 available positions citing "bitcoin." Cryptocurrency employment is being advertised by Fortune 500 businesses such as JPMorgan Chase, Amazon, Apple, and PayPal.

We've witnessed an infusion of international investments into India's crypto companies, in addition to the creation of employment, owing to the great potential of our IT professionals and entrepreneurs here. Investments in Indian cryptocurrency and block chain firms have surged by over 1482 percent in the previous 5 years, as per research by data analytics portal Tracxn. India definitely should reap the benefits of the present interest and pace in crypto assets by enacting clear legislation to support the business and retain its global standing.

Several well-known foreign owners and capitalists have been steadily financing blockchain and cryptocurrency businesses developed by Indians in recent years. This might be interpreted as an intentional attempt by financiers to get experience to India's crypto industry and capitalize on its enormous growth prospects. The recent picture clearly demonstrates how investors are taking holdings in private firms building infrastructure for virtual currencies and the dispersed networks that support them as an additional way to gain experience to the virtual currency market. The positive outlook for India's IT landscape motivates other prospective investors and provides innovators the encouragement to take a chance of starting their own company.

Our government is aiming of being a $5 trillion economy by 2030, couple of years from now will be India's moment to shine on the international forum. India is already seeing an increasing number of elite crypto initiatives emerge in India that will foster the development of young entrepreneurs and future unicorns in the crypto trading platform and will also allow the country to reap the rewards of advanced technologies approaches, optimizing our worldwide recognition and competitive edge, as well as career opportunities and competency development.

People are more interested in crypto and it has soared in the meantime: it's a hot issue not only among investors but also in popular culture, due to people from long-time speculators like Elon Musk to that student from school on any social media platform. A significant increase in bitcoin investments is seen all over the world. The top five countries in terms of bitcoin ownership are all in Asia, surpassing the entire globe in virtual currency uptake. Cryptocurrency holdings increased from $923 million in April 2020 to roughly $6.6 billion in May 2021 in India with a significant rise of speculation in 2022, where families possess more than 25,000 tonnes of gold. The number of bitcoin users in our nation has increased by over 612 percent.

Young Indians, in specifically, have shown a predisposition for bitcoin over traditional commodities, property, and equities because to its integrity and potential growth. Moreover, as data usage costs have decreased and smart phones and excellent connectivity have become more widely available, also our country's lower-income states have witnessed a rise in online users, bridging a formerly large digital disparity. As one of the greatest rising markets in terms of development and strong potential, India will quickly ascend to become a leading player in the virtual currency business.

Using crypto technology to strengthen the economic future is a big potential for India right today, and passing up the potential development, that is now within reach would be a mistake. As a result, it is critical that we seize the present growth in the market to create a forward-thinking legislative model that enables bitcoin firms to function and contribute to the greater economy. Simultaneously, the cryptocurrency market must keep an open line of communication with the government and aid them in establishing forward-thinking ideas and policies to promote innovation and productivity. We would be indeed able to harness the sector's complete economic worth and ensure India's future generation of progression.