India’s Bitcoin trade volumes soared since Supreme Court of India lifted banking restrictions for exchanges
According to data from Paxful and LocalBitcoins on Coin.dance, India’s Bitcoin P2P transaction volume reached an all-time high in July 2020. Specifically, Paxful’s India trading volume increased from around $ 576,000 in May 2019 to $ 8.97 million in July 2020, and India’s total P2P volume on Paxful and LocalBitcoins reached $ 13, 7 million. One of the biggest reasons seems to be due to the Supreme Court of India removing an order restricting banks from accessing cryptocurrency trading in March.
Bitcoin P2P transaction volumes in India hit an all-time high in July
Siddhartha Dutta, CEO of Marlin – technology startup in Bangalore – said:
“The recent spike in demand for Bitcoin transactions reflects the Indian response to the Indian Money Exchange Catastrophe of 2016. At that time, some people knew the value of Bitcoin hodl by issuing BTC is not controlled by any government. ”
Old notes suddenly devalued due to a government decree. The idea that Bitcoin’s value is based on market principles, rather than fickle government policies, makes it especially appealing.
The Bitcoin price on the Zebpay Indian exchange increased from $ 757 to $ 1,020 in the 18 days following the Currency Exchange Catastrophe. Meanwhile, the price of Bitcoin in the US remains relatively stable. For some Indian investors, investing in Bitcoin is a safe option for storing their assets and minimizing uncertainties from the economy.
India’s burgeoning crypto market slowed significantly in 2018. It was also the time when the Reserve Bank of India (RBI) ordered financial institutions to avoid working with exchanges. Now, ditching banking restrictions appears to free up the demand for cryptocurrencies – which have been pent up for so long.
And as a result, today, Bitcoin trading activity is increasing significantly across India and especially on P2P exchanges like Paxful and LocalBitcoins.
Source: Coin Dance, Paxful, LocalBitcoins.com
As the chart above shows, India’s Bitcoin P2P transaction volume has doubled over the past five months. Smaller exchanges serving the Indian market, such as Delta Exchange, are also overgrowing with new registrations increasing 100% from the previous month.
“Crypto has also been slowly gaining traction thanks to mesh networks that help provide connectivity and fast streaming in rural areas. This could signal the start of an even bigger adoption cycle. People in India are getting exposed to the internet, mobile-first. However, this growth should not be mistaken for mainstream adoption.”
Crypto startups in India have mushroomed
The bull market, combined with social outlays and travel restrictions caused by Coronavirus, could power the Indian startup scene.
Entrepreneur Prashanth Balasubramanian – co-founder of wallet startup Lightning Lastbit – said:
“Lastbit aims to reach beyond India to serve Europe and ultimately North America. But, since 2020 – a relative pandemic year – I think this is a good time to be working at home.”
“Silicon Valley is a great place to do business, but as a young company, we can be more efficient and keep things stable with 10x difference.”
Dutta said he hopes that crypto projects will continue to thrive in India’s tech industry during the Coronavirus downturn.
“There is certainly potential for more development.”
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