Cryptocurrencies, bitcoins and other tokens are swiftly gaining popularity, simply due to the promise of big earnings and a desire to avoid pandemic fatigue. In addition to the pandemic, which prompted the digital shift towards online investments, the Supreme Court’s 2020 decision to overturn a 2018 prohibition on trading virtual currency has sparked growing interest in cryptocurrency. Companies such as WazirX, CoinDCX, and CoinSwitch Kuber have sponsored social media strategies and developed applications with user-friendly features to attract more participants.
However, the government is expected to prohibit most commercial cryptocurrencies in India. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is set to be introduced in the Lok Sabha during the upcoming term, which starts on November 29,
A poll by LocalCircles indicated that Indians now have significantly lower levels of faith in foreign cryptocurrencies, as the government prepares to introduce a Bill banning all private cryptocurrencies in India. LocalCircles is a collaborative digital platform and polling company that focuses on governance, public policy, and public concern.
Some findings from the study
More than 56,000 residents from 342 districts across India responded to the LocalCircles research. Men made up 66% of the responders, while women made up 34 percent. 42% of the respondents came from Tier 1, 33% from Tier 2, 25% came from Tier 3, 4 and village districts. According to the report, 87% of Indian households have no investments in digital currencies.
74% say that marketing on TV and other media promoting Bitcoin and other cryptocurrencies do not adequately highlight the dangers associated with them. 76% want marketing to be temporarily suspended until new rules are in place. 51% want India to launch its own cryptocurrency while 54% want the government to levy cryptocurrencies rather than regulate them. According to the survey, 71% of Indians have little or no faith in digital currencies, whereas mere 1% has a high level of trust.
LocalCircles also mentioned that it might share the research outcome to relevant parties in the Public Authorities, the Reserve Bank of India, and all Members of Parliament in the coming weeks as the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is brought up for debate and authorization in parliament.