Adoption of Digital Currency (Cryptocurrency) in India 2023

A decentralized and encrypted virtual currency is called cryptocurrency. The two different types of cryptocurrencies are public and private. In India, there are about 41 cryptocurrencies in use. The Indian cryptocurrency market has been segmented based on type (Bitcoin, Ethereum, Ripple, Dashcoin, Litecoin, Bitcoin cash, others), by process (mining, transaction), and by end-user (banking, real estate, stock market & virtual currency).

Adoption of cryptocurrency in India:

In India, crypto exchange has recorded 119.90 million users in 2022 and is expected to reach 331.30 million users by 2027 at a compound annual growth rate (CAGR) of ~19.55% during the 2023 - 2027 period.

The CryptoTech sector in India has grown rapidly because of the widespread attention that these digital currencies and other applications have received. According to a survey by Nasscom, the sector is attracting progressively new start-ups with over 15 million individual investors, and over 60% of Indian States adopting cryptocurrency. In India, there are currently over 230 start-ups in the crypto technology sector, and increasing investment from institutional and individual investors has raised awareness of the advantages of crypto technology

The Reserve Bank of India has imposed a ban on the trading of cryptocurrencies in India on 6th April 2018. After two full years, the supreme court overruled the ban calling it unconstitutional. Since the lifting of the ban, the market has seen a boost in the number of users of cryptocurrency and the amount of money traded using the latter. Several companies started offering solutions for easier currency trading, like TCS's Quartz Solution for Crypto. A Mumbai-named cryptocurrency exchanger, WazirX, recorded rapid growth in the amount of cryptocurrency trading in India. Even the month-to-month percentage of the currency also went up significantly, from 270% in April 2021 to 400% in March 2022.