Despite RBI’s Concern, India Invests Billion In Bitcoin
- ByStartupStory | June 28, 2021
The idea that Bitcoin is equivalent to gold, is gaining more popularity as India invests billions in bitcoin. In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. This happened despite outright hostility towards the asset class from the central bank and a proposed ban in trading. Some entrepreneurs are putting 1 million rupees into Bitcoin, Dogecoin and Ether. Most people have cashed out when bitcoin marked the $50,000 mark in February, and are bringing it back following the recent tumble. More than 15 million Indians are buying and selling digital coins. In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That’s despite outright hostility toward the asset class from the central bank and a proposed trading ban.
The interest in Bitcoins in India includes the young age group from the 18-35 year old cohort, says the co-founder of India’s first cryptocurrency exchange. Latest World Gold Council data indicated Indian adults under age 34 have less appetite for gold than older consumers.“They find it far easier to invest in crypto than gold because the process is very simple,” said Sandeep Goenka, who co-founded ZebPay and spent years representing the industry in discussions with the government on regulation. “You go online, you can buy crypto, you don’t have to verify it, unlike gold.” One of the biggest hurdles preventing wider adoption of bitcoin is the regulatory uncertainty. Last year, the Supreme Court quashed a 2018 rule banning crypto trading by banking entities, resulting in a trading surge. However, authorities show no signs of embracing cryptocurrencies. The nation’s central bank says it has “major concerns” about the asset class and six months ago the Indian government proposed a ban on trading in digital coins – though it has been silent on the topic since.
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