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crytocurrency

Why Crypto Is Not Going To Leave India For Good?

In essence, we need to realise that crypto is not an overnight phenomenon, it's been battle-tested for the last 10 years and is not going to go away
Founder and CEO, WazirX
4 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Despite the ban by the Reserve Bank of India on banking transactions for the cryptocurrency, the digital asset hasn’t slipped off the fancies of investors and traders in India. The sector has remained active all throughout the year, registering certain blows and triumphs. While several established companies decided to finally pull the shutter down, the industry recuperated with newer, innovative models. Stable coins, on the other hand, have also been growing in their popularity, improving the prospects for crypto in India.

The Setup

As we step into the New Year, the government would finally release its impending draft governing the fate of cryptos. Yet again, it has given cynics a chance to speculate the demise of crypto. However, not just India but crypto is not going to disappear from any country. The reason is simple. The decentralized nature of crypto makes it resistant to any form of censorship. In fact, if we only retrace the origins of cryptocurrency, Bitcoin - the first crypto to be created - was built with the aim of creating a non-censorable, decentralized global currency.

The very DNA of cryptocurrency makes it immune to perish. These digital assets are not limited to any national jurisdictions and instead, are propelled by blockchain technology and the community of really passionate holders. The database of these transactions is managed by a network of computers spread across the globe. Besides, users need not even save their digital assets in a wallet; it can be stored in one’s laptop, on the cloud, pen drive, simply anywhere. This very aspect makes it nearly impossible for the regulators to ban either crypto or its possession.  

Can It be Banned?

However, while difficult to execute, bans do affect mainstream adoption. For instance, the current banking ban in India has negatively affected crypto as a brand and has made it difficult for Indians to participate in this new form of digital wealth creation. Indians, no doubt, are suffering huge losses due to this move. However, that hasn't stopped people from investing in cryptos. After the RBI ban, the peer-to-peer model has proved to be a boon to crypto in India. The model makes it easier for Indians to be a part of this revolution, without needing to deal directly with bank accounts of exchanges. The success of the P2P model in India only testifies that people understand the importance of cryptocurrencies, the global impact of the digital asset, and hence continue to participate in it.

While we vouch for the rise of crypto, we also don’t completely rebuke the intention behind the ban. Given the intractability of cryptos, it could have been used for money laundering and illegal trade. However, the ban is a counter-productive move that would only give rise to illegal transactions without any means of tracing or controlling the same. Ironically, the transactions can be better controlled by working in tandem with exchanges and better controlling the entry and exit points for the users. To the same effect, we do expect the government to alter its stance on cryptos and work together with the existing start-ups and exchanges to better regulate the discipline.

The Future of Crypto Business

In the coming years, we believe that India will see greater growth in the number of crypto businesses. It is simply a matter of time before our government pays attention to the voice of the youth and enables Indian businesses dealing in crypto to have bank accounts. Countries around the world are taking a favourable stand towards crypto. As a result, they are witnessing a growth in the number of jobs, amongst other favourable factors. In fact, crypto was one of the fastest growing job sectors across many countries including India. In addition, it will also lead to higher tax revenue for the government!

In essence, we need to realise that crypto is not an overnight phenomenon. It's been battle-tested for the last 10 years and is not going to go away. Instead, it is going to ingrain itself deeper into the social and economic fabric of the world and India. This will, in turn, lead to a reduction in interest rates for Indians, access to the large capital pool for Indian companies of all sizes, access to new ways of wealth creation, and then a lot more.

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