It was reported recently that India had removed the crypto ban it initially instilled in the year 2018. While the ban was not placed on digital assets themselves, it did place limitations on banks and financial institutions and prevented them from offering their services to crypto-based businesses.
India Is Likely to Up Its Investments
The Supreme Court of India has decided that this ban is unconstitutional and has thus taken the liberty of striking it down. This is a first step towards the legitimacy of cryptocurrencies in other nations, but we’ve still got a long way to go.
One of the next steps involves investing, which analysts say is headed India’s way in the coming weeks and months. Dr. Garrick Hileman – head of research for Blockchain.com – explained in an interview:
Opening the doors wider for cryptocurrencies won’t only expand their daily use in India, but also bring in new talent and innovation that would otherwise choose a more crypto-friendly country. In the long-term, that’s a clear benefit for the Indian economy and its competitiveness globally.
Jobs in the blockchain sector are crucial to the establishment of crypto in the financial space, he comments, and are likely to grow the industry by unprecedented means. He mentions:
The ecosystem of users has grown from thousands of pioneers to over 30 million people today – growth that significantly outpaces the early internet’s growth rate (approximately two times faster). That growth includes the use of cryptocurrencies as a lower cost and more efficient alternative for certain financial transactions, the ‘digital gold’ thesis for bitcoin as the ultimate hard asset and the emergence of the decentralized finance movement (DeFi) that aims to expand financial inclusion and restore user-control over personal finances.
Nischal Shetty is an executive with Wazir X, which was recently garnered by leading crypto exchange Binance. He states that people in India are already showing renewed interest in his startup’s cryptocurrency, along with several others. He states:
The best part about the SC ruling is that we will finally get to see the emergence of Indian public blockchains which require cryptocurrencies for functioning. With the ban lifted, we now open ourselves to the possibility of Indian developers building and promoting a similar public blockchain (as bitcoin and Ethereum) that will be open for trading.
Hileman commented that when governments want to get in the way of crypto adoption and promotion, they are simply postponing the inevitable. He states that digital assets are making their mark on the future of finance, and when regulators want to seek preventative methods of disallowing usage, they are stopping nations from getting ahead digitally.
Becoming a Global Leader
We are seeing India develop a strong position in developing next-generation blockchain and distributed ledger technologies. Enhanced regulatory clarity will only help Indian firms develop regional and global leadership positions.