Even as India faces its worst economic crisis in almost three decades, local crypto trading, especially on peer-to-peer exchanges, has peaked. This is believed to be a direct impact of the Supreme Court lifting RBI’s “unconstitutional” two-year ban on cryptocurrencies in March, only three weeks before the country went into lockdown. Anticipating a favourable result, not only did new crypto exchanges and bitcoin trading platforms launch in India, but some also relaunched their apps.
Further, the crypto boom in the last three months has coincided with one of the biggest depreciations of the Indian rupee — the yearly inflation rate is almost 10 percent now — leading to an overall peaking interest in alternate forms of wealth, particularly bitcoins.
The founder of a global bitcoin exchange told YourStory recently, “In the beginning, bitcoin was all about speculation, and people wanted to get rich. But now, they are seeing it as a secure medium of exchange and as a pathway to the financial world. It is the best product in the entire fintech space right now.” Bitcoin trading volumes in India have surpassed the spike of December 2017, when the digital currency was enjoying an unprecedented bull run globally. Since the lockdown began, BTC volumes have increased 10X, according to Bitcoin.com. As per the latest exchange rates on Coin Dance, one Bitcoin — the most popular cryptocurrency in the world — is worth Rs 7.04 lakh.