India: Bitcoin is Used Mostly for Speculation While Government Lacks Focus
While the Indian government continues to advance initiatives to study the regulatory environment for Blockchain and cryptocurrencies, the awareness and use of Bitcoin and cryptocurrency continues to grow within the Asian country.
Bitcoin users growth
Acclaimed fastest growing Bitcoin exchange in India, Bitxoxo has reached a milestone of 100,000 users on its platform.
In a press release, the company claims to have been consistently adding between 10,000 to 20,000 users every month, and this has led to their current amount of users.
Elaborating on the growth, Hesham Rehman co-Founder & CEO, Bitxoxo says,
“We have been relentlessly working towards creating awareness around Bitcoin investments. India is very much ready to accept a currency revolution as it is moving towards technology acceptance. This will be one more stud to the same portfolio. The growing number of users reflects that Bitcoin is gaining popularity and trust. We are sure figures are further going to climb up.”
Mixed reactions
The Indian authorities have exhibited mixed reactions towards Bitcoin and cryptocurrencies especially in 2017.
Earlier in the year, the finance ministry recommended that the Indian government discourages the use of Bitcoin.
On the other hand, a proposal for the regulation of Bitcoin and cryptocurrencies is being drafted. Apparently, India is showing some real interest on matters that concern digital currencies.
Blockchain speaker and influencer, Kumar Gaurav tells Cointelegraph that the Indian government is aiming to end corruption and move forward with digitization, with projects like UPI and Aadhar. Yet, given that Indian banking and payment systems are advanced, cryptocurrencies are not seen as a payment tool that is required to solve any existing problem.
Speculation
Gaurav notes that Bitcoin and other cryptocurrencies are used by Indians mostly for speculation and money making.
Gaurav explains that in India, betting or any kind of investment that is not regulated is illegal. India as a nation has capital controls, so the finance ministry will discourage the use of digital currencies.
Gaurav says:
“The Indian government is trying its best to understand the system and technology behind Bitcoin. It will still take some time to before a decision can be reached where it can be declared safe. Also, the Bitcoin ecosystem in India is not at a stage where the government has to take bold action for it and declare it completely illegal.”
Technology growth
India state governments are experiencing tremendous growth on Blockchain application sectors where it is creating clear value. Recently, Auxesis Group moved 53 mln people on the Blockchain network for the State Government of India, and are now working on issues which arose due to such large scale implementation.
Gaurav does not expect so much short term value creation due to Bitcoin in the Indian ecosystem. He notes that the government deserves to be given enough time to work it out and come up with a final decision on Bitcoin investments. Meanwhile, people can enjoy the speculation.