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While supporters of Bitcoin and other cryptocurrencies have claimed its superiority over traditional physical currencies time and time again, the Indian government has not clarified its position on the cryptocurrency so far. Previously, he even planned to ban crypto trading in India altogether. More recently, however, the government is examining the possibilities of setting up a new panel to decide on the regulation of cryptocurrencies. What’s interesting is that although cryptocurrencies operate in a regulatory vacuum in India, its transaction volumes continue to witness a massive increase.
In a recent conversation with CXOToday, Kumar Gaurav, Founder and CEO of Cashaa and crypto market expert, said the country has untapped potential when it comes to cryptocurrencies. With the right crypto regulations, India can become a crypto hub and lead a digital revolution.
India is riding the crypto wave
When it comes to global trends in the crypto space, Gaurav says that over the past few years, global awareness of crypto investing has increased. People have started to participate in the crypto economy and are understandably curious because most people don’t want to miss out on a big opportunity.
The Covid-19 pandemic has further accelerated the adoption of these digital currencies, making it a phenomenon, as investors trust these currencies to not only provide greater autonomy, but they are also cheaper and more secure. long-term. According to a Statista research report, the global cryptocurrency user base grew by almost 190% between 2018 and 2020.
The crypto landscape in India is also constantly changing, says Gaurav, with the country being the second largest bitcoin holding company in the world, making it a healthy market for crypto startups. This point has also been identified by investors. Renowned foreign investors like Sequoia Capital, Tiger Global, Polychain Capital, etc., have already invested millions of dollars in Indian crypto startups, he says.
Around 10 million investors who trade through various cryptocurrency trading platforms hold around $ 1.5 billion. Transparency or distributed ledger technology and the growth of venture capital investments will continue to drive the growth of the cryptocurrency market, Gaurav believes.
According to him, the government must understand that without the formation of a regulatory framework, black markets develop and have a negative impact on the economy. On the other hand, regulations allow legitimate tracking of money. Given these facts, along with the growing understanding of the value of blockchain technologies, we expect things to be headed in the right direction.
Speaking of market volatility, Gaurav explains: The cryptocurrency market is small compared to, say, gold. In less liquid markets, even small information or speculation can create extreme price volatility. An investor must therefore study the project, understand its objective, its legitimacy, its history, etc. then invest. Currently, people only go through social media to get rich.
While Gaurav agrees that crypto is at an incipient stage not only in India but also globally, yet he believes there is growing interest, especially among the younger generation who have gained in-depth knowledge of the technology and wins in number.
Overcome security challenges
Cryptocurrency has the potential to transform and revolutionize peer-to-peer and non-compliance transfer transactions; However, there are some security, privacy, and control challenges that end users have to overcome to benefit from cryptocurrency. The lack of regulation encourages fraud and is a major factor holding back the entire industry. Once the regulations are in place, this can all be easily dealt with.
In fact, crypto malware is on the rise, and crypto miners accounted for 41% of all malware detected in 2020, according to the NTT 2021 Global Threat Intelligence Report.
As cryptocurrency transactions are recorded in the distributed public ledger known as the blockchain, hackers have a large attack surface to gain access to critical and sensitive information. If this public ledger is used to store confidential contract information or payment data, file replication could potentially facilitate access by hackers. If a key is compromised, it can be used to access the database in a distributed database.
However, according to Gaurav, the scams have been with us since day one. So, despite the change in tactics of crypto miners and cybercriminals, it is impossible to stop the growth of crypto in the world and in India.
In fact, next-generation innovation offers the highest level of security. He said, in the financial ecosystem we see a number of security breaches and issues every day due to inferior technology or lack of innovation. Digital currencies support projects that aim to solve these problems.
Over the past two or three weeks, however, volumes on Indian exchanges have fallen with their global peers in a bearish climate in the crypto market. But Gaurav advises looking at the big picture and the long-term outlook.
Currently, less than 1.3% of the world’s population owns a cryptocurrency, making it a very exciting time for entrepreneurs to start taking advantage of blockchain and crypto technology. According to research, the size of the cryptocurrency market is expected to grow from $ 1.6 billion in 2021 to $ 2.2 billion by 2026, with a CAGR of 7.1%.
As we gradually move towards a more efficient digital world, we must ensure that we adopt the best technologies. Blockchain is the best technology we have today. Faster implementation of this technology can help us fill in the gaps and ensure a secure infrastructure, he concludes.
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