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 experience massive increases.
In a recent conversation with CXOToday, Kumar Gaurav, Founder and CEO of Cashaa and expert in the crypto market, 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 Statistical research report, the global cryptocurrency user base grew by nearly 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. âThis 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, âhe says.
Around 10 million investors who trade through various crypto 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, âThe 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, âThe 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, however, he believes that interest is growing rapidly, especially among the younger generation who have gained in-depth knowledge of the technology and are gaining in popularity. 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 NTT’s 2021 Global Threats Report.
As cryptocurrency transactions are recorded in the distributed public ledger known as the blockchain, hackers have a large attack surface to access 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, nothing can stop the growth of crypto around the world and in India.
In fact, next-generation innovation offers the highest level of security. He says, âIn the financial ecosystem, every day we see a number of security breaches and issues due to inferior technology or a 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 amid a bearish backdrop 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, at a CAGR of 7.1%.
âAs we gradually move towards a more efficient digital world, we need to make sure we are adopting the best technologies. Blockchain is the best technology we have today. Faster implementation of this technology can help us close the gaps and ensure a secure infrastructure, âhe concludes.