According to Reserve Bank of India (RBI) Governor Shaktikanta Das, the number of Indians said to have invested in cryptocurrencies is “highly exaggerated.” On November 10, Das designated crypto investments as a serious concern for India’s financial stability and its macroeconomy, Quartz reported. Presumably, he made the following statement at a Business Standard event:
In terms of the amount that has been invested it’s definitely growing and anecdotally we hear so many things, but I am not so sure about the numbers that are being quoted. Because, whatever information we have, with a reasonable amount of confidence I can say that the number of participants in the crypto market seems exaggerated.
Indians invested over $80B in digital assets
According to estimates of market researchers, Indians living in India invested a total of $80.5 billion in digital assets. This is a ballpark figure because there is no official data on cryptocurrency investors in India.
Crypto market cap crosses $3T
Regardless of the number of investors in India and elsewhere, there’s no denying crypto market buoyancy. The global market cap of all cryptocurrency assets has just crossed $3 trillion. According to the RBI governor, however, the majority of investors from India are small-scale.
Investments are noteworthy due to absence of legal framework
The lack of regulation makes the cryptocurrency craze in India notable. The RBI governor said that the Indian government was actively reviewing recommendations put forth in a panel report. The high-level panel is chaired by Subhash Chandra Garg, former economic affairs secretary.
Reportedly, the government is expected to introduce a draft bill on regulating virtual currencies for voting in the parliamentary budget session in February next year.
Crypto craze extends to teens
Millennials contributed a great deal to the popularity of cryptocurrencies. Now, teens are the latest group, to which this popularity is extending. In May, crypto investments in India were estimated to be $6.6 billion, up from just $923 million y/y.
It seems teens are starting to hold pocket money in crypto, attracted by the promise of huge gains and the intuitiveness of the best cryptocurrency apps. Crypto trading also offers a reprieve from COVID-invoked boredom.
They are becoming familiar with market ups and downs in the process albeit their naïve approach. 17-year-old Hashir Hussain said:
As an investor, I think cryptocurrencies are a good way to exponentially grow your wealth. High volatility is a risk factor, but the profitability is a great plus.
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