The tech industry facilitating cryptocurrencies in India will achieve a value of $241 million by 2030, according to a recent report.
By that time, the crypto-tech market in India has the potential to create over 800,000 jobs, adding economic value totaling at $184 billion, according to the report issued by the National Association of Software and Services Companies (Nasscom), in association with cryptocurrency platform WazirX. The ‘Crypto Industry in India’ report also detailed that the industry will be worth $2.3 billion globally by 2026.
The report explained that many young Indian investors have been drawn to the allure of cryptocurrencies’ promising returns. In spite of regulatory uncertainty in the country, this appeal has still led to an exponential growth of the crypto-tech industry in India.
The crypto-tech industry can be defined as including crypto applications in trading, P2P payments, remittances, and retail. According to the report, this sector has grown by 39% in the last five years in India.
“India provides the most unique ecosystem to CryptoTech to play a transformative role in strengthening key priority areas such as healthcare, safety, digital identification, trade and finance, and remittances and help in addressing pandemic-induced challenges,” said Debjani Ghosh, president, Nasscom. “A consultative and enabling regulatory approach towards Crypto technologies can help drive the growth of CryptoTech ecosystem and innovation in India.”
At present, the industry employs 50,000 individuals in India, with over 230 startups and 150 proofs of concept and projects. Indian retail investors have invested about $6.6 billion in crypto assets, it said.
According to the report, Bitcoin, Smart Contracts, Decentralized Finance, The Wave of Tokenization, Non-Fungible Tokens, Rise of CryptoTech Capital and Central Bank Digital Currencies will be the seven key trends driving the growth and adoption of crypto-tech in India.
Non-metro crypto growth
The spread of cryptocurrencies in India is being driven via adoption by young investors from non-metro cities, according to registration data. Cities in India are classified by taxes and subsidies according to population size, with the largest 8 classified as metropolitan. The remaining ‘Tier 2’ and ‘Tier 3’ cities are known as non-metros. Subsequently, a wave of young investors from these non-metro cities have flooded exchanges to trade stocks and cryptocurrencies.
Enrollment from the top 30 non-metro cities grew at a 30% higher rate than in metro cities, according to Paytm Money. Additionally, 60% of the new users of online wealth management platform INDMoney are from tier II and tier III towns.
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