India: The next hotspot for cryptocurrency
As novel digital currencies like Bitcoin are getting adopted by West and the Far East, India's time is now. With the ongoing COVID-19 crisis, which has brought a second lockdown in European countries, India is looking toward new economic opportunities. While the subcontinent is also in the middle of the pandemic, it is developing and diversifying its economy into new types of financial assets.
Cryptocurrency is internet-based platform to oversee financial transactions
Digital assets, such as cryptocurrencies, security tokens and other blockchain systems, have changed the way people deal in financial transactions. Cryptocurrency is the internet-based platform built on a blockchain technology to oversee financial transactions. The platform allows easier and regulated cross-border payments and investments via novel electronic wallet transfers, and security tokens that are the modern day replacement for the equity asset class.
The worldwide impact of blockchain elements and engines
Within a few years, Bitcoin has turned investors into millionaires overnight. Across the globe, new blockchain elements and engines are being injected into the already advanced market space, though its introduction into the global capital markets and Indian financial system was not without major concerns.
Major market expansion into digital payment and investments
In recent years, the novel ecosystem of digital assets has belonged solely to the West (Europe and North America) and the Far East (China and Japan). However, despite India's lack of experience, its sheer economic potential in terms of population size places it among the top digital assets influencers globally. The time for major market expansion into the digital payment and investments is ripe.
According to IMF, India is a competitor to European leaders
Today, digital assets are worth hundreds of billions of dollars in daily trade volumes, and with growing Indian commodities in the system, the potential is endless. India was also classified by the IMF as a competitor to European leaders like France and the United Kingdom. India is leading these commercial powerhouses in nominal GDP, because of the over one billion population and social change.
Potential decentralization of power associated with digital assets
A major concern regarding the broadening expansion of digital assets into the Indian market is the widening of responsibility. As currency turns digital, government responsibility is seized into an invisible power. This potential decentralization of power is unsettling for governments worldwide, especially in India. However, after the concept of growth, cryptocurrencies became popular in India, the legal liability and threat of decentralization became clearer.
Government's stance on cryptocurrencies
In 2019, an internal committee of government ministers advocated the prohibition of tradition cryptocurrencies and legal repercussions for those who break the potential law. Though the Supreme Court of India decided that the recommendation was unconstitutional, the action further showed federal fears. While the concerns are overbearing, the transparency of cryptocurrencies and the potential for regulation of the market gives way for governmental support.
Companies have started figuring out the developing market share
However, companies like Bakkt, Gemini, INX, iZero, and Openfinance have taken advantages of the developing market, working with experienced investors, regulation specialists and government officials. These companies are novel digital assets exchanges, that provide governance to protect investors and brokers through KYC and AML protocols, thus avoiding 'dark' funds and tax evasion. These protocols bring a stable flow of income of tax from investments.
INX Limited and the world's first regulated digital assets exchange
By way of example, INX Limited, a leading Israeli-American cooperative between experienced Wall Street experts, including David Weild, a key figure in the passage of the American Jobs Act, is involved in bringing the world's first digital assets exchange that operates under strict regulation and making security tokens accessible to the public. This new development was recently authorized by the American SEC.
Proper regulations for ensuring early success and long-term sustainability
The key to controlling the market and preventing new technologies to corrupt the Indian economy is to formulate proper regulations to ensure early success and long-term sustainability. However, the threat of government intervention and consequences for those participating in new opportunities remains a concern.
India is the next hotspot for investment in digital assets
Indian financial institutions need to address cryptocurrencies, security tokens and new technologies to further develop the economy. The Indian government must reach out to get a sense of how other governments are seeking transparency, and regulating digital assets. Despite governmental concerns, India is the next hotspot for major investment in digital assets. The world of financial enterprise has arrived, and India's time is now.
