Forecast: India’s encryption users will reach 156 million in 2023

On March 21st, it was reported that in the past six years, despite the government’s traditionally negative attitude towards the industry, the number of cryptocurrency investors in India has increased significantly. According to Statista, the number of encryption users in the country surged 760% between 2017 and 2022, reaching 134 million. One of the key reasons for the adoption of cryptocurrency is the growth of the middle class and the country’s underdeveloped traditional financial system.

Interpretation of this information:

India has been known to have a negative stance towards cryptocurrency for quite some time. However, it was reported on March 21st that despite this, the number of cryptocurrency investors in the country has increased significantly in the past six years. In fact, the number of encryption users in India has surged by 760% between 2017 and 2022, reaching 134 million according to Statista.

One of the primary reasons for the adoption of cryptocurrency is due to the growth of the country’s middle class and the underdeveloped traditional financial system. The rise of the middle class brings with it a growing need for finance and investment. In contrast, India’s traditional financial system is fragmented thus, results in the unbanked or underbanked populations lacking formal access to financial institutions or bank accounts. As a result, cryptocurrencies have become an attractive investment option, providing an opportunity for these people to invest in secure, decentralized, and easily accessible technology.

This has been further highlighted by certain cryptocurrencies like Bitcoin and Ethereum, which have seen an unprecedented rise in value, particularly in the current economic climate. Cryptocurrency has also provided a new source of investment at a time when traditional investments, like stocks and property, have experienced great turbulence due to COVID-19 pandemic.

As the number of cryptocurrency users increases, the Indian government is slowly recognizing the significance of cryptocurrencies, and the potential benefits they offer. Discussions around the regulation of cryptocurrencies have already begun, indicating the possibility of a more positive attitude towards the industry in the future.

In conclusion, despite the traditionally negative attitude of the Indian government towards cryptocurrency, the growth of the middle class and the underdeveloped traditional financial system in the country have resulted in an unprecedented surge in the number of cryptocurrency users. The promising potential for investments and the need for access to secure, decentralized financial technology have been the driving force behind this shift.