The P2P market in India has tripled in size, despite there being a lot of uncertainty in regulations. The Indian decentralized finance sector in general has also been growing. This growth has occurred in spite of the volatility and uncertainty in the worldwide markets through 2020. Read on to learn how the P2P cryptocurrency market in India has made these strides.
Growth in P2P Cryptocurrency Transactions
P2P Bitcoin trading in India has reached a new high. What triggered the growth was a decision by the country’s Supreme Court. The court repealed an unconstitutional rule imposed by the Reserve Bank of India. That rule forbade local banks and other lenders from providing services to cryptocurrency exchanges and investors. Since the unconstitutional law was repealed in March, P2P Bitcoin trading in India has seen rapid trading volume gains. The weekly trade quota was $4.4 million in early August compared to $1.52 million in early January for just one exchange.
Repeal of the Law Inspires Investor Confidence
Nischal Shetty, who is the CEO of Indian cryptocurrency exchange WazirX, said that the restrictions around cryptocurrency transactions from 2018 restrictions made it nearly impossible to covert rupees into cryptocurrency or cryptocurrency into rupees. Once the law was repealed, the cryptocurrency exchanges have been able to make these trades. This gave investors confidence that their funds wouldn’t be stuck in limbo therefore Bitcoin price in India has seen steady growth. This will continue to be the trend as India’s government supports the currency.
How Much Investors Put Into the Cryptocurrency Exchanges
The P2P volume is growing by an astounding 33% every month. New user registrations and daily volume increases have also grown by 10% to 20% per month since March. This is creating a positive feedback loop. As investors feel more confident, they put more money into P2P cryptocurrency networks. Others see that it’s working for their neighbors, friends or family, and they want to get in on the action.
What Is Driving the Demand for P2P Cryptocurrency
Many people in India lack access to a traditional bank account. That’s one reason why the demand for P2P cryptocurrency services is so high in India. Another reason is that other countries, such as the United States, allow banks to hold cryptocurrency for their clients. A lot of mainstream companies around the world are getting into the cryptocurrency market. This lends an air of authority to the P2P world.
How the P2P Platforms Are Growing
The total trading volume on India’s top two P2P platforms was about $4.4 million United States dollars in the first week of August. However, a regular exchange had $6.5 million United States dollars in trading volume during the same week. This suggests that there is a lot of room for additional growth. OKEx is launching a peer-to-peer platform that will allow cryptocurrency fans in India to buy and sell Tether and Bitcoin. There will be no transaction fees if they use Indian rupees.
Where P2P Will Go
Around the world, P2P is growing. India’s cryptocurrency experts expect theirs to do the same. There are a few caveats. One is how quickly India’s economy can recover from the COVID-19 crisis. The crisis is still looming large over the worldwide economy in late 2020. Experts are also waiting for the Indian government to make more decisions on a few issues related to cryptocurrency.
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