- India P2P Bitcoin volume trading has grown by 87% according to Arcane Research
- Remittance from overseas could have played a role in the rise of the numbers
After the Supreme Court in India lifted the ban placed on Bitcoin by the Central Bank, India’s usage of the crypto asset had grown massively in that period.
Available statistics by Arcane Research, the two most populous countries in the world, India and China, currently both account for over 30% of PP Bitcoin volumes.
However, in recent times, India has overtaken China which shows that Bitcoin has begun to blossom in the country. Since the Supreme Court judgement, P2P Bitcoin 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 the Indian Rupees which is constantly losing value against the Dollar. Another reason could be because the country operates a huge remittance economy.
In 2019 alone, over $80 billion was remitted to India. This alone accounts for 3% of the total GDP of the country.
There is every probability that some of the remittance was made in Bitcoin or other crypto assets because of the cheap transaction fees and the speed with which such transactions deliver. This possibly also played a role in the rise of Paxos that specializes in such crypto remittance.
Other factors that have led to the growth of Bitcoin volume trades
Some of the other reasons that could have left to the growth in Bitcoin volume trade is the lack of financial inclusivity in the country. In India, many of the citizens of the country do not have a bank account number. Bitcoin brings those without the account with access to the global digital economy system.
Innovations in the crypto space have also led to the growth of the Bitcoin volume trading. Decentralized finance projects like flashloans which are built on the Ethereum smart contract have also given a push to the growth.