Some of the biggest beneficiaries of the Covid-19 disruption have been those operating in the virtual space; e-commerce being a prominent one. So much so, it has suddenly become the lifeline. And digital payment has become the norm in large swathes of transactions and trade.
By the end of 2020, global e-commerce was growing at 19 per cent CAGR (201723) to reach $6.5 trillion. Digital/mobile wallets were fast becoming preferred modes for e-commerce payments, and were projected to corner 52 per cent market share by 2023.
Against this backdrop, blockchain technology and crypto assets started gaining prominence again. As the US-China trade war accelerated in 2019, governments across the world started exploring the possibility of digital currencies, in response to the growing political and economic instability caused by a fluctuating US dollar and its impact on international trade. The younger generation found the world of financial technologies more enticing and promising, as the blockchain technology offered safety and security of data.
Certain cryptocurrencies/tokens such as Bitcoin, Ethereum and few others began to provide different kinds of value proposition as an investment in an asset that was delivering more returns. While most welcomed the underlying technology blockchain as revolutionary, crypto was criticised heavily due to rising cases of money laundering, illegal trade and fraudulent activities.
Wanna know what's happening on the crypto front? Join ETMarkets Crypto Conclave on Feb 24
Interestingly, though this may be possible in the case of crypto, its not the technology that failed us, but the people who fail the system. In the case of crypto too, most of the reported cases of hacks, or frauds have been instances where people jumped into cryptocurrency without doing due diligence and the perpetrators who took advantage of the situation. That makes it necessary for the regulators to step in and handle the issue at hand by not banning the technology, rather embracing it and allowing it to develop organically within a legal framework.
Economists, industry players and investors around the world continue to raise concerns over the risks associated with entering the ecosystem and strongly advise investors to perform due diligence and research before jumping the bandwagon.
Elon Musk, while investing in Bitcoin, has warned people to not invest their life savings into crypto. A good investor who understands the functioning of the crypto ecosystem will always advise to invest only around 1-5 per cent of their disposable income in it.
US Treasury Secretary Janet Yellen while expressing concerns over cryptocurrencies, said innovation could help address the challenges around it, and the technology can actually be used to plug digital gaps. Even while some lawmakers remain wary, the industry has more and more investors and corporations jumping onto the bandwagon.
To put things into perspective, the global crypto market with 8,000+ different cryptocurrencies operating is today valued at over $1.4 trillion, of which Bitcoin (BTC) alone is worth over $ 1 trillion. In India, the current volume of crypto transactions in India is around $7.5 million a day compared with $1.5 billion a day in the U. Since the reversal of the ban on trading cryptocurrencies, Indian exchanges have witnessed about 500per cent growth in business. With Bitcoin crossing the $55,000 mark, experts today feel cryptocurrency has emerged as one of the most valued asset classes in the current scenario.
India should capitalise on the potential and instead of banning it try to embrace it within its legal framework in order to try and create its own indigenous model by allowing some of the better open-source cryptocurrencies to function as an asset class.
Most of the operators of the crypto exchanges or institutions in India are run and owned by Indians. These teams and players from India over the years have been careful and cautious in their approach and steered clear of treating it as a currency, and instead focus on it as an asset class. Working within a realm of uncertainty prevailing about the legality of its very existence, the market players have been cautious and worked on building safe and secure infrastructure based on the blockchain technology.
All the key players today practise the highest level of KYC and AML-monitoring processes. The skilled workforce operating in these industries are handpicked from the best of institutes and bring in innovative products to ensure that even if cryptocurrency may be a global offering in the DeFi world, its functioning and operations are done within India, with products developed by Indians operating within the framework of what is expected of any financial institution in India by the law of the land.
Should a ban come on cryptocurrencies, it may be a sign of India missing the global fintech development bus, at a time when the nation stands on the thresholds of doing even better. The governments concerns are genuine and well-founded. Every player in the industry will univocally admit to the merits of it.
Hence most of them are looking forward to the Government of India with a hope that with dialogue, guidance and participation, India can actually turn the entire game to its advantage. Countries such as the US, Germany, Singapore and Japan, have adopted favourable policies to enable the growth of the cryptocurrency industry. While Japan was the early starter, the US too slowly and steadily changed its stance and cautiously inched towards adopting it.
Singapore, which has on many occasions worked in tandem with the Indian government, has provided interesting case studies that can tried and adapted on Indian soil. One of the best examples being GST implementation.
Though the industry remains uncertain about how the official digital currency will pan out, it remains optimistic that a dialogue with the government on technology and digitisation can put things in perspective and they will be able to see the merit of letting open source and established cryptocurrencies operate in India as an asset calls regulated by and transparent to agencies that need to be on top of such affairs.
While the Indian crypto industry is trying to proactively engage with the government and is willing to be regulated and taxed, Indian investors too are turning bullish on the potential of this sector. And why not?
In the last few weeks, we have noticed credible and significant institutions like Tesla, MasterCard, Paypal and Microstrategy adopting cryptocurrencies into their ecosystem. Besides, companies such as Google Pay and Samsung Pay are now contemplating making inroads into cryptocurrency via Bitpay. Analysts from financial institutions such as JP Morgan have observed that gold ETF investors are now looking at bitcoin as an alternative to gold.
Simultaneously, more and more governments globally are working towards developing their digital currency or Central Bank Digital Currency (CBDC), while creating an ecosystem to enable a digital economy. All these developments are happening at an unprecedented pace, and the time is not too far when digital currencies would be ushered in as part of the mainstream economy.
In hindsight, it took 70 years for the country to reach $3 trillion GDP mark. Bitcoin, on the other hand, conceived in 2009, is already a $1 trillion industry in just 10 years. This speaks volumes of its potential and the crucial role it can play in achieving the Indian governments $5 trillion economy target by 2025.
The bill on cryptocurrency has not yet been presented, and its content nature is still unknown. Yet, the crypto community remains focused on its commitment to work with the authorities and government officials in order to find a way where the merits can be evaluated by competent authorities. The only hope is that the government will give an opportunity to the technology to prove its merit while operating under the watchful eyes of the legal entity.
Every form of investment has risks attached to it, just as in the case of stocks or mutual funds. However, what is important is the need to educate and create awareness to address those issues and plug the gaps. The blockchain and crypto industry has increasingly been working towards educating and sharing knowledge. The caution level with regard to investment in the sector is as stringent as those being followed by, say, the insurance industry.
Globally, cryptocurrencies, such as Bitcoin and Ethereum, owing to their public nature, are already considered public currencies. Regulation and adoption of cryptocurrencies as part of the economy is inevitable for global economies. India hasnt missed the bus; rather, the bus is waiting for India to hop on to chart the course of an exciting future for a digitalised financial system.
(Sumit Gupta is CEO & Cofounder of CoinDCX. Views are his own)
More here:
Judge cryptocurrency by technology, and not the other way around - Economic Times
- MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme - CBS News - May 15th, 2024 [May 15th, 2024]
- DOJ Charges 2 Brothers With Scheme to Steal Cryptocurrency - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - AOL - May 15th, 2024 [May 15th, 2024]
- MIT-educated brothers allegedly stole $25M in crypto in just 12 seconds - New York Post - May 15th, 2024 [May 15th, 2024]
- DOJ charges 2 brothers tied to $25M attack on MEV bots last year - Blockworks - May 15th, 2024 [May 15th, 2024]
- Brothers indicted for 'first-of-its-kind' cryptocurrency heist - Courthouse News Service - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Sonne Finance developers offer bounty to hacker behind $20 million crypto theft - The Record from Recorded Future News - May 15th, 2024 [May 15th, 2024]
- Brothers indicted over $25 million Ethereum cryptocurrency theft: DOJ - FOX 10 News Phoenix - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Price on May 15: Bitcoin dips below $62k ahead of US inflation report today - The Economic Times - May 15th, 2024 [May 15th, 2024]
- $100 Trillion Market Cap For Cryptocurrency Will Be a Reality: Analyst - Watcher Guru - May 15th, 2024 [May 15th, 2024]
- This Week in Web3: Crypto Payment Rails and Regulatory Clarity - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- Unveiling Fourprime Token Where Innovation Meets Cryptocurrency Revolution - AccessWire - May 15th, 2024 [May 15th, 2024]
- Binance: A Comprehensive Overview of The World's Leading Cryptocurrency Exchange - Blockchain.News - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Likely to Resume Rally: 4 Stocks Set to Gain - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency: Mass Institutional Adoption Underway, with Bitcoin, BlockDAG Network, and Ethereum Value Surge - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - sharewise - May 15th, 2024 [May 15th, 2024]
- Two Brothers Arrested for Attacking Ethereum Blockchain And Stealing $25M In Cryptocurrency - Eurasia Review - May 15th, 2024 [May 15th, 2024]
- 3 Potentially Brutal Cryptocurrency Risks That Most Investors Simply Aren't Ready For - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Crypto customer scammed in alleged HK$1 million hell money scheme in Hong Kong - South China Morning Post - May 15th, 2024 [May 15th, 2024]
- Brothers accused of stealing $25 million in cryptocurrency in 12 seconds - MSN - May 15th, 2024 [May 15th, 2024]
- Solana (SOL) Price Prediction 2024,2025 And 2030 Forbes Advisor INDIA - Forbes - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Warning: Avoid These 3 Failing Names - InvestorPlace - May 15th, 2024 [May 15th, 2024]
- Top 3 Cryptocurrency to Invest Now According to Reddit: Bitcoin, Ethereum, Furrever Token - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Two Brothers Educated In Prestigious University Stole Cryptocurrency Worth $25 Million In 12 Seconds, Feds Allege - Daily Caller - May 15th, 2024 [May 15th, 2024]
- 6 Altcoins To Consider Buying For The Next Bull Run In 2024 - Forbes - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - ThePrint - May 15th, 2024 [May 15th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Market News: Bitcoin Halving Steadies Price, Network Transaction Fees Spike - Investopedia - April 25th, 2024 [April 25th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- 10 Best Cryptocurrencies To Buy In April 2024 - Forbes - April 25th, 2024 [April 25th, 2024]
- Movement Labs raises $38 million to build layer 2 blockchain on Ethereum with Facebook tech - Fortune - April 25th, 2024 [April 25th, 2024]
- Cardano Founder Charles Hoskinson Reiterates Core Purpose of Cryptocurrency Here's What You Need to Know - Cryptonews - April 25th, 2024 [April 25th, 2024]
- From Cryptocurrency to Cannabis: 7 Penny Stocks on the Rise - InvestorPlace - April 25th, 2024 [April 25th, 2024]
- South Carolina: Cryptocurrency scams on the rise in Upstate - WYFF4 Greenville - April 25th, 2024 [April 25th, 2024]
- Binance BNB Memecoin Traders Join 100X New Cryptocurrency On Uniswap - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- The Future of Real Estate: Investing in Tokenized Properties with Cryptocurrency - ForexLive - April 25th, 2024 [April 25th, 2024]
- The Current Position with Cryptocurrency Regulation in the United States - Latest Cryptocurrency Prices & Articles - April 25th, 2024 [April 25th, 2024]
- 3 Must-Know Facts About Ethereum, Before You Buy the Cryptocurrency - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: 3 Meme Coins To Watch In May for Exponential Gains - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- EOS Falls 14% In Bearish Trade By Investing.com - Investing.com - April 25th, 2024 [April 25th, 2024]
- The UItimate Cryptocurrency to Buy With $1,000 Today - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Romance scams involving AI images, cryptocurrency on the rise in Chicago - CBS Chicago - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Event Of 2024: The Aftermath Forbes Advisor Australia - Forbes - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: Top 3 Coins To Buy Now For 10X Gains In 2024 - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- What's going to be different with the halving of Bitcoin this time? - Euronews - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Kaspa Falls More Than 3% In 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- BRICS To Replace US Dollar With Cryptocurrency for Trade - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Sparks Unprecedented Transformation in Cryptocurrency Market - West Island Blog - April 25th, 2024 [April 25th, 2024]
- Influential Analyst on YouTube Shares High-Potential Cryptocurrency That Could Beat Shiba Inu (SHIB) and Dogecoin (DOGE) Gains in This Bull Run -... - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Uniswap Up More Than 3% In 24 hours By Benzinga - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Bitcoin is halving again what does that mean for the cryptocurrency and the market? - The Conversation - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours By Benzinga - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- RackNerd Expands Cryptocurrency Payment Options with Coinify Integration, Accepting Over 30 Cryptocurrencies - PR Web - April 25th, 2024 [April 25th, 2024]
- What Meltdown? Crypto Comes Roaring Back in the Philippines. - The New York Times - March 18th, 2024 [March 18th, 2024]
- Chinas cryptocurrency investors made gains of US$1 billion in 2023 - South China Morning Post - March 18th, 2024 [March 18th, 2024]
- 1 Super Cryptocurrency Could Soar to $200,000 by 2025, According to a Wall Street Analyst - The Motley Fool - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency Miners Need to Report their Energy Use - Earthjustice - March 18th, 2024 [March 18th, 2024]
- Understanding the Fundamental Differences Between Cryptocurrency and Fiat Currency - FinSMEs - March 18th, 2024 [March 18th, 2024]
- SOL Flips BNB, Becoming 4th Largest Cryptocurrency as Ethereum Becomes Next Target - CCN.com - March 18th, 2024 [March 18th, 2024]
- Prosecutors seek from 40 to 50 years in prison for Sam Bankman-Fried for cryptocurrency fraud - The Associated Press - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency: 3 Meme Coins That Could 15x This Bull Season - Watcher Guru - March 18th, 2024 [March 18th, 2024]
- Can the Bitcoin surge push India to overcome its cryptocurrency hurdles? - The National - March 18th, 2024 [March 18th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 Today - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency laundryman gets hung out to dry - The Register - March 18th, 2024 [March 18th, 2024]
- Bitcoin price predictions: How much more could it rise in 2024? - Euronews - March 18th, 2024 [March 18th, 2024]
- Shiba Inu Is Skyrocketing: Is It a Top Cryptocurrency to Buy Right Now? - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- 1 Top Cryptocurrency to Buy Before It Soars 1,328%, According to Cathie Wood of Ark Invest - The Motley Fool - March 18th, 2024 [March 18th, 2024]
- The other Bitcoin rally: How scams are cashing in on the cryptocurrency fever - EL PAS USA - March 18th, 2024 [March 18th, 2024]
- Kalshi Prediction Market To Introduce Cryptocurrency Betting (Payouts In USD) - Blockchain Magazine - March 18th, 2024 [March 18th, 2024]
- Bitcoin Hits Record $72,000, Emboldening Crypto Industry - The New York Times - March 18th, 2024 [March 18th, 2024]
- Solana (SOL) Flips BNB to Become 4th Largest Cryptocurrency - Watcher Guru - March 18th, 2024 [March 18th, 2024]
- Predicting which Cryptocurrency will Boom in 2024 - ForexLive - March 18th, 2024 [March 18th, 2024]
- Nigeria's Cryptocurrency Crackdown Will Have Consequences, Experts Say - Voice of America - VOA News - March 18th, 2024 [March 18th, 2024]
- Crypto ETN providers head for UK but urge rethink on retail ban - Financial Times - March 18th, 2024 [March 18th, 2024]
- Trump Signals Positive Stance on Cryptocurrency If Elected to the White House - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- Bitcoin Bulls vs. Bubble Bears: A Cryptocurrency Clash - Crypto Times - March 18th, 2024 [March 18th, 2024]