The cryptography industry is on track to undergo massive expansion globally within the next five years. The latest research report by India's top technology industry body predicts that the global cryptography market will reach a value of $2.3 billion (approximately Rs. 17,087 crore) by 2026. In the case of India, the report predicts the crypto technology market valuation to reach $241. The adoption of cryptocurrencies by multiple banks in the US, Europe, and Asia regions has been noted as a key factor driving the growth of the crypto sector.
Nascom, India's leading non-governmental technology industry association, published its findings earlier this week in a report entitled 'India's Cryptography Industry'.
“Bitcoin, decentralized finance (DeFi), crypto capital, and central bank digital currencies (CBDCs) are driving the growth of the crypto market,” the report states.
According to the study, lending on DeFi platforms has increased by more than 650 percent on a global level. DeFi systems allow financial products to appear on public blockchain networks that are not regulated by central banks or intermediaries.
Internationally, the world's most valuable cryptocurrency Bitcoin has emerged as the fastest digital asset to reach a market capitalization of $1 trillion (approximately Rs. 7,429,420 billion), surpassing the value of gold and the US dollar.
Virtual currency situation in India
This analysis predicted a bright future for cryptocurrencies in India.
According to the report, over 60 per cent of states in India have emerged as early adopters of cryptography.
Over 15 million retail investors, especially up-and-coming startups, are the key drivers of this rapid adoption, while also highlighting the benefits of crypto technology in India.
Cryptocurrencies are currently not regulated by any banks, so they can be used to facilitate large payments in an untraceable manner, regardless of geographic restrictions.
“India offers the most unique ecosystem for cryptography and plays a transformative role in strengthening key priority areas such as healthcare, security, digital identity, trade, finance and remittances,” said Debjani, President, Nascom.・Mr. Ghosh said.
Ghosh further added that a consultative and enabling regulatory approach to cryptography can foster the growth of cryptography in India.
Currently, India's Finance Minister Nirmala Sitharaman is overlooking the drafting of a virtual currency bill. The draft bill will be presented to Parliament during the next winter session.
Cryptocurrencies are unregulated digital currencies, not fiat currencies, and are subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other kind of advice or recommendation provided or endorsed by NDTV. NDTV is not responsible for any losses arising from investments based on recommendations, forecasts or other information contained in the article.
