India has seen a significant increase in crypto investors since 2017, despite the government's historically negative stance on the digital asset industry. Many factors have contributed to the spread of cryptocurrencies in India , including the rise of fintech, the introduction of mobile technologies, and the growing popularity of digital payments.
One of the main reasons behind the proliferation of digital assets in India is the rise of fintech. Fintech companies are increasingly using blockchain technology to create innovative financial products and services. Fintech companies use cryptocurrencies for peer-to-peer payments, international transactions or micropayments. With the development of fintech in India, cryptocurrencies are likely to play an increasingly important role in the financial ecosystem. Another reason is the adoption of mobile technology. There are over 1 billion smartphone users in India. This has created a large user base here that is connected to online payments and the technology needed to invest in cryptocurrencies. Also, the rise of mobile wallets in India has made it easier for people to make payments with cryptocurrencies. The growing popularity of digital payments is another driver of cryptocurrency adoption. The government's push for a cashless economy has led to a surge in online payments. Many people here use mobile wallets and payment platforms to pay for goods or services.
Despite the massive growth of cryptocurrencies, the Indian government is skeptical of the industry. In 2018, the Reserve Bank of India (RBI) issued a report banning banks from trading in cryptocurrencies. This resulted in a temporary drop in the value of cryptocurrencies. However, the Supreme Court of India lifted the ban in March 2020, leading to renewed interest in digital assets. Indian authorities recently banned crypto advertising and sponsorship in the women's cricket league. This followed a previous ban for the men's cricket Premier League, which was already in place last year. The Indian government has yet to accept cryptocurrencies , but the first signs that the crypto industry is opening up are beginning to emerge. Two years ago, the Ministry of Corporate Affairs proposed changes to the Companies Act to require companies to disclose all cryptocurrency investments. This means that the government has begun to regulate cryptocurrencies more actively and recognizes their potential value.