A digital asset
investment fund
Viska is an alternative investment fund based in Iceland that invests in digital assets.
Viska is an alternative investment fund based in Iceland that invests in digital assets.
India's economy is facing significant headwinds, with the stock market nearing its first bear market in five years. The small-cap index has already fallen into bear-market territory, and mid-cap stocks are showing similar signs of distress. In response, the Reserve Bank of India (RBI) has announced a $21 billion liquidity infusion to stabilize markets and support economic growth. However, such interventions, while providing short-term relief, underscore the long-term problem of relying on inflationary fiat currencies to manage economic downturns.
Chart by Bloomberg, showing the NIFTY Index trending downward.
Amid this economic uncertainty, crypto trading volumes in India have surged, particularly on four of the country’s top exchange platforms. Trading volume has more than doubled, and much of this increase is being driven by investors in smaller cities. A notable trend is the shift away from options trading toward direct investment in digital assets, with Bitcoin emerging as a preferred store of value.
According to data via CoinGecko, there has been a visible increase in monthly volume at four of the largest crypto exchanges in India.
This pattern mirrors similar movements in other economies facing inflationary pressures and financial instability. Bitcoin and other cryptocurrencies provide an alternative to traditional financial systems, allowing individuals to preserve wealth in a decentralized manner, free from government intervention and currency devaluation.
India received 14.3% of global remittances in 2024, its highest share ever. Traditionally, sending money home has involved high fees and delays. However, with the rise of digital assets such as Bitcoin and stablecoins, many Indian living abroad are turning to cryptocurrencies to transfer funds more efficiently. For instance, a software engineer in the United States used Bitcoin to send money to his family in India, reducing transfer time from days to minutes and cutting fees substantially.
Data from the World Bank shows that India received a staggering $129.1 billion in remittances. As more people turn to digital assets for cross-border transactions, this trend is likely to lead to a greater number of Indians holding digital assets.
Despite regulatory uncertainty in India, recent developments indicate a more favorable environment for cryptocurrency adoption. The Financial Intelligence Unit of India (FIU) has granted Coinbase permission to resume operations in the country. This decision represents a significant milestone, as it signals potential regulatory progress and increased acceptance of crypto-related businesses.
Confirmation via X of Paul Grewal being appointed as the CLO at Coinbase to USIBC Board of Directors.
While India has yet to implement a clear and comprehensive regulatory framework for digital assets, this move reflects a global trend of governments and financial institutions gradually integrating cryptocurrency into their economies. The return of a major global exchange like Coinbase is a positive indicator for further institutional adoption and retail participation in the Indian market.
Announced via Coinbase Blog, Coinbase is now authorized to conduct the trade of digital assets in India.
India’s embrace of digital assets is not an isolated event. Many economies with inflationary pressures or financial instability have turned to Bitcoin and other cryptocurrencies as a hedge against economic downturns. Countries such as Argentina, Turkey, and Nigeria have witnessed similar adoption trends, where citizens increasingly rely on crypto to escape the pitfalls of devaluing local currencies and restrictive monetary policies.
As a developing country with a growing technology sector and a youthful population eager to embrace innovation, India is poised to become a major player in the global crypto landscape. The ongoing economic struggles, coupled with a growing awareness of digital assets as a viable alternative, create a strong foundation for sustained adoption.
This is a notable turning point for the crypto sector in this region. According to Reuters, the cryptocurrency market is poised to grow to over $35 billion by 2035.
The surge in crypto trading volume in India amid its economic struggles highlights the broader potential for digital assets in developing economies. As inflation and financial instability continue to challenge traditional markets, more people are turning to decentralized alternatives like Bitcoin. With increasing regulatory clarity and growing adoption, India is set to play a crucial role in the global crypto revolution.
Data via RIVER
The potential for growth is immense, and as more economies recognize the benefits of decentralized finance, the adoption of digital assets will absolutely accelerate. This shift is not just about financial speculation—it represents a fundamental change in how individuals and institutions interact with money in an increasingly digital world.
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