After securing its independence from the U.K. in 1947, India’s relationship with the U.S. has had its share of ups and downs. But, from the 1990s onwards the relationship was strong and positive. It has also been mutually advantageous in terms of political, military and economic points.
The rise of blockchain technology has added another dimension to that relationship. In 2009 the U.S. was one of the most prominent countries in building the technology ecosystem that supports ongoing innovation and development.
This could change.
The 2021 Global Crypto Adoption Index by Chainalysis shows that India is actively pursuing its crypto aspirations. This year’s ranking below, shows India is in the second spot, up from eleventh in 2020. American dropped to sixth place in this ranking, while India climbed from eighth to ninth.
The Economic Times, an India-based newspaper, recently reported that India is likely to surpass the U.S. within two years of becoming a major cryptocurrency economy.
“The growth is amazing. In the past 12-18 months, it has increased by five to six times. We have also seen start-ups from India and new investors come in. We’re not as successful in India than the US. The US has a greater number of crypto start-ups and is home to more value companies. There are also more crypto companies attempting to IPO. India has still not caught up with the US but in the next two to three years we will probably have an even bigger ecosystem here.”
A new ranking however tells an entirely different story. According to Coincub’s 2021 Global Crypto Ranking issued last month, the U.S. is the clear global leader, while India comes in at the sixteenth position.
The Coincub ranking considers 18 different factors – all of which are listed along the right hand side of the above graphic – and include such things as institutional acceptance, government regulation, DeFi adoption, bank activity in crypto, mining hashrate – just to name a few. It’s worth noting that the previously mentioned Chainalysis ranking is only based on three weighted components.
However, Coincub describes the U.S. crypto market as follows:
The US leads the way in overall crypto friendliness – but not by as much as you may think. Some countries do better in certain areas, such as regulatory acceptance and institutional acceptance. The US has a large percentage of crypto-owners. The US is also home to Coinbase (NASDAQ:), the world’s first stock market listed crypto exchange – which also happens to be one of the biggest. US is home to the largest number of Bitcoin ATMs per capita. Although tax isn’t very high, you will have to pay it. For tax records purposes, the IRS will need to see a record of all activity. It is possible to invest in Bitcoin for retirement but it comes with high fees and volatility.
The Coincub cryptocurrency assessment for India is:
India’s bitcoin movement has grown steadily over the past few years. They are seeing a lot of interest in investing in crypto to gain rather than as a payment intermediary. Trading in cryptocurrency is legal and accepted. A number of major regulatory changes are currently being considered, including the Cryptocurrency and Regulation of Official Digital Currency Bill (2021). This was supposed to be discussed in Parliament’s March budget session but was pushed back at the last minute. India was added to our priority list by a high proportion of crypto-holding residents, moderate taxes on gains and availability of exchanges.
When all is said and done, there are too many variables to declare which crypto market will be the largest within two years – but does it really matter? The technology works regardless of whether you are in a crypto-friendly or banned country. It still delivers on its promises of economic equality for everyone.
To The Flipside
- It seems that some members of the media within India might have an inferiority complex regarding how that country measures up to the U.S. in the crypto-space – which seems silly.
- Here’s the thing – it’s not a race with a single winner. Anyone who allows crypto access for citizens of their country wins.
Why you should care
It’s helpful to be aware of how other countries adopt or reject crypto. If countries like China and Russia reject private cryptocurrencies, and only embrace state-run digital currencies – that should tell you something about politicians within your own country who oppose crypto.
You can also join the crypto-verse
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
It takes just one click to unsubscribe.