The Reserve Bank of India (RBI) has repeatedly highlighted its concerns about cryptos and conveyed the same to the government for the final decision with respect to regulations.
As India looks at regulating cryptocurrencies such as Bitcoin and others, the crypto industry in the country has pegged a significant upside to the adoption of crypto technology (cryptotech). According to a Nasscom report published in partnership with crypto exchange WazirX titled Crypto Industry in India, cryptotech has the potential to create more than 8 lakh jobs by 2030, up from 50,000 individuals employed currently. Moreover, the industry is expected to reach $241 million in size by 2030 in India. So far, $6.6 billion have been invested by Indian retail investors in different crypto assets such as Bitcoin, Ethereum, Polygon, etc., the report noted. The industry, which includes crypto applications in trading, P2P payments, remittances, and retail among others has grown by 39 per cent in the last five years in India.
“CryptoTech industry in India has not only demonstrated a positive impact at the grassroots levels but is emerging as a fastest growing technology sub-sector. India provides the most unique ecosystem to CryptoTech to play a transformative role in strengthening key priority areas such as healthcare, safety, digital identification, trade and finance, and remittances and help in addressing pandemic-induced challenges,” said Debjani Ghosh, President, Nasscom.
However, the Reserve Bank of India (RBI) had repeatedly noted its concerns about cryptos and conveyed the same to the government for the final decision with respect to regulations. Earlier this month as well, RBI Governor ShaktiKanta Das in a webinar organised by The Indian Express and the Financial Times. Shaktikanta Das had said “I think we need more credible answers as to whether going forward, what contribution private cryptocurrencies will make to the Indian economy going forward. We need to be convinced with more credible explanations and answers.”
Last month, Finance Minister Nirmala Sitharaman had informed reporters in an interaction that clearance from the Cabinet is awaited on the bill. Earlier this month, former Deputy Governor of RBI R Gandhi at an event had said that crypto needs to be treated as a foreign asset and should be taxed on the basis of its payment channels. “It should be paid through normal channels when it is bought otherwise it will be deemed as mined and capital gained and taxed heavily. This will be a voluntary disclosure. Then if it is proved mined, capital gained and taxed is likely,” Gandhi had said.
Meanwhile, the Nasscom report added that the crypto industry can potentially create an economic value addition of $184 billion in form of Investments and cost savings by 2030. “Our number of users from Tier-II and Tier-III cities have grown by 2,648 per cent and contributed to 55 per cent of total signups on WazirX in 2021. Crypto has immense potential to contribute to our $5 trillion economy vision,” said Nischal Shetty, Founder and CEO, WazirX.
On Friday, China’s central bank People’s Bank of China sent shock waves among the global crypto community as it announced that all crypto transactions would be illegal in China, effectively banning cryptos including Bitcoin. According to a Bloomberg report on Saturday, two of the world’s largest crypto exchanges Huobi and Binance have stopped registrations from Chinese users, however, users from Hong Kong can still sign-up on the two platforms.
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