- Bitcoin India P2P volume trading has grown 87% according to Arcane Research
- Overseas transfers could have played a role in increasing numbers
After the Supreme Court in India lifted the ban placed on Bitcoin by the Central Bank, India’s use of the crypto asset had grown tremendously in that period.
Statistics available from Arcane Research, the two most populous countries in the world, India and China, currently account for over 30% of Bitcoin’s PP volumes.
However, recently, India has overtaken China which shows that Bitcoin has begun to blossom in the country. Since the Supreme Court ruling, Bitcoin’s P2P volume has increased by 87%.
Analysts have tried to make sense of the factors responsible for this growth; some have tied this to the inflation rate of India Rupees which is constantly losing value against the Dollar. Another reason could be because the country operates a huge paying economy.
In 2019 alone, over $ 80 billion was transferred to India. This alone accounts for 3% of the country’s total GDP.
There is every likelihood that some of the payment was made in Bitcoin or other crypto assets due to the cheap transaction fees and the speed at which such transactions are accomplished. This may also have played a role in the growth of Paxos specializing in such crypto transfer.
Other factors that have led to the growth of Bitcoin volume trades
Some of the other reasons that may have let the growth in Bitcoin volume trade are the lack of financial inclusivity in the country. In India, many citizens of the country do not have a bank account number. Bitcoin brings in those without the account who have access to the global digital economy system.
Innovations in the crypto space have also led to the growth of Bitcoin volume trading. Decentralized finance projects such as flashbacks built on Ethereum’s smart contract have also boosted growth.