India has never had an easy time when it comes to crypto, but that hasn’t stopped it from secretly opening its arms to the growing financial space.
India Has Moved Far When It Comes to Crypto
According to a recent study conducted by blockchain analysis company Chainalysis, India currently ranks second in the 2021 Global Crypto Adoption Index, meaning there is presently only one other country that has done better when it comes to pushing and accepting digital currency adoption.
This is odd considering the region has often worked to get in the way of blockchain and crypto innovation within its borders. Case in point: back in the year 2018, the country’s central bank decided that businesses that delved in both blockchain and crypto should not have access to standard banking services and tools. Thus, they could not obtain bank accounts or any of the other products that many standard enterprises and individuals could utilize rather easily.
While cryptocurrency was not fully banned, any businesses that worked in the crypto space found their support doors shut practically overnight. However, this decision was later outlawed approximately two years later by India’s Supreme Court, who deemed the ruling unconstitutional.
This really opened things up in India, and many believed that trading and digital currency innovation would ultimately rise to new heights within the country’s borders rather soon. Things certainly looked that way for a while, though it wasn’t long before new regulation was suggested in India’s Parliament… Regulation that if passed, would cause all crypto activity to be banned within the state of India.
As one can see, it has been a real roller coaster ride for crypto investors within the nation, and yet adoption continues for the time being. Until all crypto activity is fully banned, it looks like residents of India will continue to engage in digital currency trading and related activities.
According to the report, crypto adoption across the globe has risen by nearly 900 percent in just the last 12 months alone. Since 2019, adoption has grown by more than 2,300 percent. In addition, several of the highest-ranking nations – including Pakistan, Ukraine, Nigeria, and Tanzania – were all developing nations. Number one on the list was Vietnam, while surprisingly, the United States was only ranked at number eight.
So Many Developing Nations Moving Up the Ladder
The document states:
Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell. Many emerging markets represented here limit the amount of the national currency that residents can move out of the country. Cryptocurrency gives those residents a way to circumvent those limits so that they can meet their financial needs.