Bitcoin demand continues to rise in India as cash reserve shortage drives up demand for Bitcoin

Golden Finance News - Recently, some members of the Indian government have made some negative statements about Bitcoin in India, but this has not slowed down the citizens' demand for cryptocurrencies such as Bitcoin in India.

At the same time, the heads of relevant Indian agencies have formed an investigation committee to investigate the true situation of Bitcoin in India, and will release a report on Bitcoin in India within three months.

Indian Bitcoin startups set up alliance DABFI Image source: Golden Finance

A few days after the investigation committee was established, Indian Bitcoin startups also formed an alliance whose main task is to discuss the issue of Bitcoin in India with Indian officials.

The newly formed alliance of Indian bitcoin startups, called the Indian Digital Asset and Blockchain Foundation, includes bitcoin-focused startups such as Zebpay, Unocoin, Coinsecure and Searchtrade.

“We request the Indian Commission of Inquiry to give us a chance to witness Bitcoin India and showcase the benefits of this technology to other citizens of India.”

“Financial inclusion, cheap cross-border remittances, tracking of value flows on blockchain networks, and India’s potential to become a financial hub are the major advantages of using virtual currencies like Bitcoin.”

Localbitcoins data shows that the volume of Bitcoin transactions in India is still rising. Image source: Golden Finance

The current cash reserve shortage in India has once again cast a shadow over the Indian economic market, which has driven the performance of Bitcoin in India to be very good. There is also a great demand for digital currencies similar to Bitcoin. In the first week of April, the Bitcoin transaction volume on the P2P website Localbitcoins was 20 million Indian rupees, equivalent to about 300,000 US dollars. In addition, the price gap of Bitcoin on Indian Bitcoin exchanges is currently $50 higher than most global averages.

Moreover, just like in China, Bitcoin traders and enthusiasts are doing well in Bitcoin trading in India. According to a recent article in the Times of India, Bitcoin in India is becoming an attractive cryptocurrency because it can be used to transfer funds around the world without anyone’s permission.

Benson Samuel, founder and CTO of Coinsecure exchange, discovered that customers were using Indian Bitcoin exchanges for arbitrage.

“A lady once bought from our exchange and within a few hours sold it to a customer on another exchange. This is because different exchanges have different bitcoin prices.”

As the cash reserve shortage situation rages in India, many citizens have found a safe haven and valuable asset storage through Bitcoin India. Most Indians now consider Bitcoin as an asset class and are waiting for the government to recognize it as a legal form of payment, just like Japan’s recent move.