India’s cryptocurrency boom faces policy uncertainty

Significance

Investments in cryptocurrencies in India grew from about USD923mn in April 2020 to nearly USD6.6bn in May 2021, according to industry estimates. More than 15 million Indians are reportedly buying and selling cryptocurrencies, placing the country closer in this regard to the United States, which has 23 million digital currency traders, and ahead of the United Kingdom with 2.3 million.

Impacts

• The government is committed to having a digital currency issued by the Reserve Bank of India.
• Curbing money laundering and illicit activities will become harder as crypto trading proliferates.
• Cryptocurrencies will draw investors, especially younger ones, away from traditional safe assets such as gold.