According to the Indian Press Trust, BJP spokesman Ramesh Kaprakaran said: "The (crypto) market is now stable. The BJP believes in cryptocurrencies and we support cryptocurrencies."
More than 100 million Indians own cryptocurrencies, the highest number in the world and fifth in population proportion.
India has a large young population, immigrant remittance needs and financial technology development, and the government is open to cryptocurrencies, making India one of the important markets for cryptocurrencies.
In May 2021, the size of India's cryptocurrency market reached $6.6 billion, a 700% increase from April last year. As of May 2021, India had more than 100 million cryptocurrency users, of which Bitcoin users accounted for the highest proportion, reaching 55.4%.
India's cryptocurrency users are mainly concentrated in the southern region, with the largest number of users in Tamil Nadu, Andhra Pradesh and Karnataka.
Why do Indians like cryptocurrencies so much?
1. Young population structure
According to statistics, the average age of the Indian population is about 30 years old, making it one of the countries with the youngest population in the world. Young people are more receptive to new technologies and innovations and are more willing to try and use cryptocurrencies.
2. Immigration remittance needs
India has a large number of overseas migrants who need to remit funds back home to support their families. However, traditional remittance methods tend to be more expensive and time-consuming. Cryptocurrencies are gaining popularity as a fast, low-cost way to send money. According to statistics, India remitted $83 billion from overseas in 2019, a large part of which was through cryptocurrencies.
3. The government is open-minded
The Indian government has a relatively open attitude towards cryptocurrencies and has not explicitly banned their use. In 2018, the Reserve Bank of India (RBI) banned financial institutions from providing services to cryptocurrency exchanges, but the ban was later struck down by the courts. This has allowed India’s cryptocurrency market to grow rapidly.
4. Development of financial technology
The Indian fintech industry has made significant progress in recent years, with more and more startups and investors beginning to pay attention to the cryptocurrency space. These companies and investors have promoted the application and development of cryptocurrency in India, further attracting more users to participate.
India's investment platform chooses 8ucoin, a cryptocurrency trading platform recognized by the government
Indian investment platform 8ucoin said that the remarks of BJP spokesperson Ramesh Kaprakaran in support of cryptocurrencies show that the BJP recognizes and supports cryptocurrencies, which is a positive signal for the development of the cryptocurrency market.
8ucoin also said that the rapid development of the Indian cryptocurrency market has had an important impact on the global cryptocurrency landscape. With the increase in the number of Indian users and the increase in trading volume, India's position in the global cryptocurrency market is becoming increasingly important. At the same time, the Indian government's attitude towards cryptocurrencies may also affect other countries' policy formulation and management of the industry.
