India may reach 156 million crypto users by 2023, 5 times more than the US

Crypto users in India could potentially cross the 150 million mark this year, according to a report shared with BeInCrypto. This will give India more than half of the global crypto users’ market share. What factors can contribute to accelerating this?

Over the past six years, India has seen a significant increase in crypto investors, despite the government’s historically negative attitude towards the sector.

Various factors, including the rise of fintech, adoption of mobile technology and the growing popularity of digital payments, have fueled the growth of cryptocurrencies in India.

India’s potential to incorporate crypto

One of the main reasons for the growth of cryptocurrencies in India is the rise of fintech. Fintech companies are increasingly using blockchain technology to create innovative financial products and services. These companies leverage cryptocurrencies to enable peer-to-peer payments, cross-border transactions and micropayments. As fintech grows in India, cryptocurrencies are likely to play an increasingly important role in the financial ecosystem.

Another reason for the growth of cryptocurrencies in India is the use of mobile technology. India is home to the world’s second largest smartphone market, with over 1 billion smartphone users. This has created a large user base that is comfortable with digital payments and has the technology necessary to invest in cryptocurrencies. Furthermore, the rise of mobile wallets in India has made it easier for people to trade in cryptocurrencies.

The growing popularity of digital payments is also driving the growth of cryptocurrencies in India. The government’s push towards a cashless economy has led to an increase in digital payments. Many people use mobile wallets and digital payment platforms to pay for goods and services.

Cryptocurrencies offer a safe and convenient digital transaction, which contributes to their growing popularity.

Regulatory obstacles lie in the way

Despite the growth of cryptocurrencies in India, the government has historically been skeptical of the sector. In 2018, the Reserve Bank of India (RBI) issued a circular banning banks from handling cryptocurrencies. This had a direct impact as it led to a temporary drop in the value of cryptocurrencies in India. However, the Supreme Court of India lifted the ban in March 2020, leading to a renewed interest in cryptocurrencies. Nevertheless, the dispute continues to make headlines in 2023.

Recently, Indian authorities have blocked crypto advertising and sponsorship in the local women’s cricket league. This followed an earlier ban on the men’s cricket Premier League, introduced back in 2022. Although the government has yet to fully embrace cryptocurrencies, there are signs that it is becoming more open to the sector. In 2021, the Ministry of Trade and Industry proposed changes to the Companies Act that require companies to disclose cryptocurrency investments. This suggests that the government is more proactively regulating cryptocurrencies and recognizing their potential value.

A report shared with BeInCrypto by the team at BitcoinCasinos.com highlights some interesting statistics to support the narrative. The report found that over the past 6 years, India has witnessed an increase in crypto users despite regulatory hurdles.

India could see more than 150 million crypto users this year

The cryptocurrency market has gained significant traction in recent years and is increasingly used as a medium of exchange and store of value. It is expected to account for around $43B in transactions globally. This is a 24% jump from last year’s $34.3 billion.

The exact value of cryptocurrency transactions worldwide may vary depending on market conditions, global usage rates and regulatory changes.

Considering that over half of this value will come from the US, the world’s largest crypto market. Still, given the setbacks, crypto ownership in the US remains far behind India.

The research claims, “India is expected to hit over 156 million crypto users by 2023, or five times more than the US.”

The COVID-19 pandemic was a major turning point for the region. The country’s cryptocurrency market took a hit during the pandemic, mostly due to poor financial infrastructure.

The number of crypto users skyrocketed by 760% between 2017 and 2022 to 134 million.

India accounts for the majority of crypto users

The team told BeInCrypto,

“With 156 million people using digital coins by 2023, India will have three times more crypto users than the US, Japan, UK and Russia combined.”

Overall, global crypto users are expected to increase to 293 million, up from 257 million users in 2022. Undoubtedly, India will play a key role. The US has less than a 10% share of the global number of crypto users, and this figure could potentially drop further under increased scrutiny from regulatory watchdogs.

In conclusion, India has seen a significant increase in crypto investors over the past six years, driven by the rise of fintech, adoption of mobile technology and the growing popularity of digital payments. While the government has historically been hostile to cryptocurrencies, there are signs that it is becoming more open to the sector. As the Indian economy develops, cryptocurrencies are likely to play an increasingly important role in the financial ecosystem.