New Delhi, India, August 23, Nischal Shetty, the CEO of leading cryptocurrency exchange WazirX, said on Monday that proper rules and regulations must be put in place to allow digital coins to reach more investors in India, particularly in smaller towns, as the Indian government formulates a new cryptocurrency Bill amid its growing adoption.
More than 1.5 crore Indians own crypto assets worth over Rs 1,500 crore, making it the most important asset class of the twenty-first century.
Bitcoin has once again surpassed the $50,000 barrier (about Rs 37 lakh for a single coin).
With a market capitalization of more than $921 billion, the most popular cryptocurrency has been trading in the green.
WazirX has seen a tremendous 2,648 percent increase in user signups from tier 2 and 3 cities in the nation, with women from smaller areas participating at a greater rate than their metropolitan counterparts.
Since January 2021, the cryptocurrency exchange has had a total transaction volume of $21.8 billion.
“We welcome the government’s move on the cryptocurrency bill and wish that cryptocurrencies will not only become available for mainstream investors but also to those who have an inclination to try the new asset class. We already have our own self-regulatory code of conduct and best practices in place for our users,” IANS quoted Shetty as saying.
Last Monday, Finance Minister Nirmala Sitharaman stated that the bill regulating cryptocurrencies is pending Cabinet clearance.
The Reserve Bank of India (RBI) has stated that a central bank digital currency (CBDC) model might be released as early as the end of 2021.
Unlike other digital currencies, a CBDC is a virtual currency issued by the central bank and backed by the government.
Governor of the Reserve Bank of India Shaktikanta Das, on the other hand, has expressed his significant worries about cryptocurrencies to the government.
The central bank issued a circular on April 6, 2018, prohibiting banks from trading in cryptocurrencies or providing such services to their clients.
The notice was legally challenged, and the regulations were overturned on March 4 of last year.
“A digital coin by the RBI will be the key step to popularise cryptocurrencies in India,” Shetty added.
“With expanding Internet access in a mobile-first country, people can start trading at ease as no bank account would be needed. The settlement period is easier, faster and 24/7 with crypto,” he asserted.
Smaller towns, he claims, are quickly catching on to crypto, which is spreading deeper into tier 2, 3, and 4 cities.
Tier 2 and 3 cities accounted for over 55% of all WazirX user signups in 2021, surpassing Tier 1 cities, which had a 2,375% increase in signups.
Furthermore, women from these regions account for 65 percent of all women who sign up across the country.
“Crypto has immense potential to remove the financial barriers for rural India, and provide cheaper access to capital, more online jobs,” Shetty said.
Many companies across the world are already accepting cryptocurrencies as a means of payment, indicating that crypto assets are on their way to becoming mainstream.