The research results presented by the Indian PR agency Bit2Buzz showed that the Indian cryptocurrency is showing growth amid the coronavirus and the lifting of the ban on the circulation of virtual assets.
According to the agency, more than 70% of young Indians are engaged in digital coin trading or cryptocurrency owners. Indians between the ages of 18 and 50 trade or own virtual currencies, according to a Bit2Buzz study. But people between the ages of 35 and 50 most often use neobanks.
Impact of the coronavirus
According to the study, the activity of cryptocurrencies was also influenced by the coronavirus. For example, the volume of turnover in the cryptocurrency exchange service for the exchange of virtual assets Cashaa has grown by more than 800%. Although no official evidence has been provided for this.
India’s largest cryptocurrency exchange CoinDCX reported an increase in trading activity during its self-isolation regime. They explained this by the fact that people spent a lot of time at home, and also, the situation of increasing interest in cryptocurrencies was influenced by the favorable verdict of the Supreme Court.
The reality of the cryptocurrency market is not clear
It should be noted that there have already been enough similar studies reporting a “crypto boom” in India. For example, a study by peer-to-peer peer-to-peer bitcoin trading platform Paxful was presented on the relative future potential of the cryptocurrency industry in India. It says that large enterprises and departmental institutions can become the main driving force behind the development of the Indian cryptocurrency industry.
Although all this did not have a significant impact on the situation. And even with the repeal of the Reserve Bank of India’s ban on financial institutions from providing services to individuals and companies associated with virtual coins, most banks are still opposed to digital currencies. So, clients caught in the trade or sale of virtual coins can be left with a closed or frozen account.