Cryptocurrency to Bring Financial Freedom to India’s Youth

 India has seen enormous growth in cryptocurrency adoption in the past years, ranking 4th place in the Cryptocurrency Adoption Index 2022.

India ranked fourth in the Bitcoin Usage Index 2022 due to the huge rise in cryptocurrency adoption in recent years. Many believe that digital currencies can provide India's tech-savvy young, who grew up with the internet and are open to embracing new technology, financial freedom. The buzz is described in a report by Indian online news outlet Scroll as "cryptocurrencies are so popular in India that kids are spending their pocket money in them." The South Asian nation thinks that by adopting cryptocurrencies early on, they would have an edge in the continuously expanding global cryptocurrency ecosystem, which will directly benefit the younger generation.

India’s Youth Leading Cryptocurrency Adoption in South Asia

India now has 600 million residents, over half of whom are under 25. Over 90% of young Indians can read or write, which is a great overall literacy rate. An increasingly technologically literate populace is fueling a culture of innovation, entrepreneurship, diversity, and digital connectivity thanks to the popularity of social media and the internet. YouGov study indicates that 49% of Indians are early adopters of technology and are keen to purchase new goods and use new technologies.

Three primary elements are responsible for the fast expanding cryptocurrency market: 

(1) India is leading the globe in terms of internet adoption growth; 

(2) a youthful, tech-savvy population lives there; and 

(3) blockchain-based games and NFTs are continually proving to be well-liked. 

A poll by cryptocurrency exchange Kucoin found that 56% of young Indians believe cryptocurrencies are the financial system's future and that more than half believe they may eventually enable individuals make decent returns and passive income. Only 24% believe that investing in cryptocurrencies is a risk (source: Young Indian investors choose to purchase digital currencies as assets over gold, despite the vagueness of the legislation and the volatility of cryptocurrencies.

Financial Hurdles to Further Foster Cryptocurrency Adoption in India

Many individuals are neglected by conventional financial institutions in nations like India, or they are unable to access or even open a bank account. Strong economic growth depends on promoting financial inclusion, which involves giving everyone access to financial services and instruction on how to utilize them. India is the second-largest country in the world in terms of the number of adults without a bank account, after China, with 190 million persons without having a bank account as of today. Service fees and minimum balance restrictions for bank accounts can be obstacles for those who are poor. A negative was frequently mentioned as being the absence of formal identity documents or the great distance to financial institutions like banks.

Cryptocurrency may not be able to affect tax laws or government expenditures, but it can have an impact on the main factors that determine economic freedom and contribute to the development of a more open financial system. National border restrictions may be removed by using cryptocurrency technology, which also offers an alternate form of value storage and creates an environment for international trade free from governmental regulation. We believe that India is well-positioned to become a global leader in the cryptocurrency space in the near future if its thriving tech ecosystem keeps expanding at its current rate. We are also enthusiastic to see young people use and benefit from a more decentralized and inclusive digital finance environment.