At the very least, the Indian people have a complicated relationship with bitcoin. While the Indian people seem eager to accept the novel idea of a digital economy, the government seems dead set on preventing this from ever happening.According to Quartz, a recent study conducted by the Indonesian company, Pundi X, has confirmed that every 1 in 10 bitcoin transaction is conducted within the Indian borders.Constantin Papadimitriou, president of Pundi X, even explained his firm’s approach during the study.
The president noted that the firm conducted a survey consisting of 3,000 participants located in the US, India, UK, Indonesia, Russia, and Japan.While bitcoin is hugely popular in India, Indian citizens seem mostly interested in investing in the popular cryptocurrency for a quick short-term profit. This approach seems most logical as Indian citizens enjoy little to no utility within their own country when it comes to bitcoin. Last year, mainstream bitcoin payment options seemed much more promising as several retailers, merchants, and restaurants started introducing bitcoin payment points especially in large cities.
However, since then most business and restaurants owners have removed their bitcoin payment points after being forced to do so by local authorities.The Indian government has been notably proactive in warning their citizens against bitcoin. So far, the Indian Finance Ministry has issued several warnings which reminds potential investors of the risks involved in cryptocurrencies and cautions them against investing. The country’s Minister of Finance, Arun Jaitley, has previously confirmed to Indian press that the government does not view bitcoin and its alternatives as legal tender. The minister has also previously denounced bitcoin as being little more than a Ponzi scheme.
In addition, several of India’s most powerful traditional economic institutions have publicly stated their distaste for the cryptocurrency industry. The country’s central bank and Reserve Bank has made no secret of their distrust of cryptocurrency, while the Indian tax office has launched an investigation into cryptocurrency exchanges. In addition, the tax authority has targeted over half a million Indian residents with high-net worths and documented investments in cryptocurrencies.Meanwhile, the company, Pondi X, has plans of expanding their business, yet has strategically decided to avoid entering the Indian market.Pondi X’s initial coin offering (ICO) is scheduled to take place between 21-31 January.
After the conclusion of their ICO, the firm hopes to erect their cryptocurrency-based point-of-sale terminals in countries such as Brazil, Singapore, Africa, and Indonesia. However, considering bitcoin’s popularity in India, the firm has stated that they hope to break through to the Indian market in the near future.However, bitcoin is not the only popular option in India. Recently, several altcoins have risen in popularity on the Indian continent, including Ethereum and ripple.
Only a handful of cryptocurrency exchanges offer users to trading XRP/USD. However, Koinex provides this option and in the last 24 hours, the platform has enjoyed $34 million worth of trade, which is significant comparing this option’s trading average of $3 million as documented on coinmarketcap.com.This article was originally published on Finance Magnates.