Chainalysis’ 2023 Global Crypto Adoption Index has revealed that India has demonstrated remarkable resilience in adopting cryptocurrency at the grassroots level despite challenging regulatory conditions, making it the top-ranked country among 154 nations.
Important Parameters and India’s Success.
India has achieved the top position in four important parameters:
1.Value Received from Centralized Services
2.Value Received from Retail Centralized Services
3.Value Received from DeFi
4.Value Received from Retail DeFi Services
India’s rise to the top position in these parameters is a significant achievement, especially because they were ranked fourth last year. This shows how more and more people in India are using cryptocurrencies in their day-to-day lives.
crypto adoption is not just about the number of transactions. Rather, it shows how much regular people in a country are enthusiastically accepting and using cryptocurrency in their daily lives. It is about the widespread use of crypto for different purposes.
Global Rankings
In the global rankings, India holds the top position, followed by:
1.Nigeria, which is ranked second in the index.
2.Vietnam, securing the third position.
3.The United States, holding the fourth place.
4.Ukraine, coming in fifth.
India has faced challenges in its crypto adoption efforts.
India is doing well in adopting cryptocurrency, which is impressive considering the difficulties it faces. The government has imposed strict tax rules, such as a high tax on profits and a deduction of tax on the source of crypto trades. These rules have caused trade volumes in the country to decrease.
India has also faced regulatory uncertainty surrounding the legality of cryptocurrencies. In 2018, the Reserve Bank of India (RBI), which is the country’s central bank, issued a ban preventing banks from dealing with crypto-related businesses. This decision was challenged in the courts, leading the Supreme Court of India to lift the ban in March 2020.
Despite these challenges, the crypto industry in India has continued to see growth, with increasing numbers of individuals and businesses exploring the use of cryptocurrencies for various purposes, including investments and payments. The government has also shown a willingness to engage with the industry and explore the potential benefits of blockchain technology.
In recent years, there has been a surge in the number of crypto exchanges operating in India, and industry players are optimistic about the future of crypto in the country. However, the regulatory landscape remains uncertain, and the government’s stance on cryptocurrencies is still evolving.
edited by firdous