- India fled the worldwide crypto crisis due to RBI’s cautious regulations.
- From $3 trillion in 2021, the total of crypto is below $1 trillion.
- RBI has strongly defied crypto from the start though the government was unsure.
Most Indian investors have insulated themselves from the global crypto crisis that has reduced the value of all cryptocurrencies on the market. From $3 trillion in 2021, the total value of cryptocurrencies is less than $1 trillion today.
After a wave of customer withdrawals, this crisis even forced the Bahamas-based cryptocurrency exchange FTX into bankruptcy.
With billions of dollars lost on crypto exchanges worldwide, India was comparatively unaffected thanks to the RBI and the Indian government’s cautious regulations.
The RBI has warned investors about the risks of investing in crypto and against using them as a means of payment. The central bank also urged consumers to be cautious about digital coins, which are not backed by tangible assets.
Since its inception, the RBI has adamantly opposed digital currency, even though the government initially toyed with regulating such tools by implementing appropriate regulations.
However, the Indian government concluded that because virtual currencies are borderless and pose exceptionally high risks, there needs to be a worldwide agreement on their limitations.
According to the RBI, the fact that cryptocurrencies were explicitly designed to circumvent the regulated financial system should be sufficient justification for treating them with extreme caution.
It is important to remember that the Indian government has not endorsed cryptocurrencies as a viable means of payment, and there is a high chance that this will not change in the near future.
The scenario in the crypto market indicates that Indian investors are now shifting their focus to other altcoins.
Bitcoin, Ethereum, Ripple and Litecoin are some of the most popular cryptocurrencies in India.
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