India Crypto Adoption Increases Due to P2P Trading
The fears over another ban on digital asset markets in India are lingering in the cryptocurrency community. Even so, the peer-to-peer Bitcoin trades in the nation are surging.
India Crypto Adoption Increases Due to P2P Trading
The fears over another ban on digital asset markets in India are lingering in the cryptocurrency community. Even so, the peer-to-peer Bitcoin trades in the nation are surging. The fast growth started after the Supreme Court of India ruled that a previous ban imposed by the Reserve Bank of India was unconstitutional. Experts expect cryptocurrency adoption in India to keep growing thanks to all of this peer-to-peer trading.
Weekly Trading Volumes Are on the Rise
Data provided by a few of the peer-to-peer Bitcoin trading platforms indicate that the weekly trading volumes in India have been achieving a consistent rate of growth since the ban was lifted in April. In early August, the local trading volume was around $4.4 million. It was just $1.52 million in early January.
What Tech Experts Think
The CEO of WazirX, Nischal Shetty, told one media outlet that the restrictions on trading of cryptocurrencies imposed by the Reserve Bank of India made it difficult for citizens to convert rupees into cryptocurrencies and cryptocurrencies into rupees. Once the ban was lifted, several platforms have set up direct banking channels for people to deposit and withdraw currency. This has helped with the peer-to-peer trading volume. Shetty added that volume is increasing by a rate of about 33% each month. New user signups and daily trading volumes are also growing since the Supreme Court of India declared the Reserve Bank of India's ban on cryptocurrency trading to be unconstitutional.
Exchange Platforms Still Have the Edge
The global cryptocurrency platforms still have a lot more volume than the local peer-to-peer platforms in India. This is not expected to change, even though the sentiment around cryptocurrency is positive. Experts expect that there will be more cryptocurrency custody services offered to customers in the near future. They also predict that private, mainstream businesses will enter the cryptocurrency market of India since it’s so easy to convert BTC to INR in the country now.
Peer-to-peer Trades Surpass Expectations
In the first week of August, the $4.4 million in United States dollars of trading volume on India's peer-to-peer exchanges vastly outperformed everyone's expectations. However, some analysts believe that more consumers are headed to the exchanges instead of the peer-to-peer platforms these days. One piece of evidence that supports this is ConSwitch's Kuber had more than $6.5 million United States dollars in trading volume during the same week of August. The rate of growth on the peer-to-peer platforms is mirroring that of the larger cryptocurrency exchanges, which is a good sign of acceptance.
Experts Are Cautiously Optimistic
Cryptocurrency is still a new technology. There's a lot of misinformation around it. There are also a lot of myths about what cryptocurrencies are and how they work. More involvement from the Indian government could put some of the misinformation to rest. It's worth noting that even with the COVID-19 pandemic, the cryptocurrency industry is one that is still growing. Instead of banning its use, India is expected to enact more regulations around it. This will legitimize it and make it more appealing to everyday people. In turn, this is likely to lead to even more people signing up to buy, sell and trade cryptocurrencies on India's peer-to-peer platforms, which have lower thresholds and fees compared to the large exchanges.