By 2022, we predict additional decentralized blockchain solutions to be developed that are more affordable, quicker, scalable, and long-lasting. Cryptocurrency has had a busy year in India in 2021. All-time high pricing for Bitcoin and large institutional investments from big corporations have been seen in the crypto market during the last year.
With Elon Musk as its most well-known face, cryptocurrency is now part of popular culture as well. The general public’s interest in cryptocurrencies seems to be on the rise in India as the country moves closer to establishing a favourable regulatory framework for the country’s crypto exchanges. What to Expect in 2021 India’s crypto exchanges have seen an increase in user registrations and daily trading volumes after the RBI removed the prohibition in March 2020.
The Story Involving Crypto In India And What Could Happen Next?
This flood continued throughout 2021. Currently, WazirX has over 10 million users, and in 2021, they transacted over $43b in transactions (up by 1735 percent since 2020). Even with the recent price volatility in cryptos and the initial lack of clarity on Indian crypto regulation, India has risen to have the world’s second-highest adoption rate, just behind Vietnam.
After a few weeks, the price of Bitcoin has surpassed the $51,000 mark for the first time. Bitcoin, the leading crypto in terms of market value in 2021, has gained almost 50% since the beginning of the year, among other events in the crypto industry. When it comes to the legal position of crypto in India, a bill that was supposed to be submitted into Parliament in February of 2021 to prohibit the use of “private cryptocurrencies” never made it out of committee.
As a result, during the current Winter Session of Parliament, the Indian government plans to present the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021.” According to all indicators, beneficial rules will be implemented. It has just been announced that a new crypto law would be introduced in the House of Representatives after Cabinet clearance.
Cryptocurrency investments and trading will be allowed with appropriate regulations for topics like risk management and investor protection if this bill becomes law. The CryptoTech industry in India is now home to more than 230 Indian start-ups, according to recent NASSCOM-sponsored research, and over 15 million individual investors are funding them.
Seven important causes seem to be fueling the expansion of CryptoTech in India: CBDC (central bank digital currency), Bitcoin, smart contracts, Defi (decentralized finance), tokenization, the steady increase in CryptoTech funding, and the NFTs. According to the findings of the research, India’s crypto industry is anticipated to grow two times as quickly and reach $241m in 2030.
In addition, the Indian crypto industry has the potential to contribute $184 billion in economic value via investments and cost savings, and it is expected to create over 8 lakh employment by 2030.
What Could Be The Main Changes That Might Be Visible In 2022?
We predict additional decentralized blockchain solutions to be developed in 2022 that are more affordable, quicker, scalable, and long-lasting. However, some of the less obvious patterns are much more intriguing. Even though Bitcoin’s market share has been progressively dwindling, did you know that Bitcoin’s market share in trading volume is also continuously decreasing?
There has never been as much interest in excellent projects like Ethereum, Solana, and the like from the market as there is right now. As interest in the area grows, we may expect to see the regulatory certainty we’ve been waiting for. For the first time, Indian Prime Minister Narendra Modi has called for regulation of the cryptocurrency market and we predict a favourable outcome in 2022. Increasing institutional acceptance, which has already reached very high levels in the West throughout the industry’s short lifespan, should follow.
Institutions in India are anticipated to catch up rapidly. As a result, the metaverse, which had a strong showing this year, is expected to expand in importance in the next year, making it one of the most important trends to pay attention to. More of us will be spending time in the metaverse producing NFTs, contributing to Defi, and engaging in GameFi activities in the next weeks and months.
To put it another way, following such a successful year, the cryptocurrency industry can be counted on to keep its position as India’s most dynamic, profitable, and inventive in 2022. In my opinion, we can say this for everyone – from established businesses to new enterprises to customers to even the government.
