According to a new report, India's digital currency industry is expected to register exponential growth over the next few years, generating $184 billion in added value to the economy through investments and cost savings. Additionally, the report predicts that over 800,000 people will be employed in the sector.
India has seen a surge in digital currency adoption in recent years, with younger investors choosing it over older, more popular assets like gold and stocks. According to Chainalysis, digital currency investments in the country have surged from $923 million in 2020 to $6.6 billion in May 2021, and are still growing. Currently, more than 15 million Indians are investing in digital currencies.
A new report from the National Association of Software and Services Companies (NASSCOM) predicts that this growth will continue.
NASSCOM predicts that the “CryptoTech” industry will reach a size of $241 million by 2030. CryptoTech companies include those dealing in trading, remittance, payments, and retail. The report predicts that the industry will reach a size of $2.3 billion globally.
Nasscom further expects the digital currency industry to contribute $184 billion to the Indian economy in the form of investment and cost savings.
“India offers the most unique ecosystem for cryptotech and will play a transformative role in strengthening key priority areas such as healthcare, security, digital identity, trade and finance, remittances and helping address the challenges posed by the pandemic,” NASSCOM Chairman Devjani Ghosh said.
Ghosh called for a “consultative and workable regulatory approach to crypto technology,” which he believes will further accelerate this growth.
Currently, India's digital currency industry employs 50,000 people, and Nasscom expects the sector to grow and create 800,000 jobs over the next few years.
The recent wave of growth has been driven by tier 2 and tier 3 cities, commented Nischal Shetty, founder and CEO of WazirX exchange.
Shetty added, “Cryptocurrencies have huge potential to contribute to our $5 trillion economic vision and over the next few years we will see them break down economic barriers in rural India, creating more opportunities and access to jobs, investment and capital.”
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