Adoption of cryptocurrencies by youthful investors from non-metro cities is driving the spread of cryptocurrencies in India.
Taxes and subsidies are used to categorize cities in India, with the largest eight being categorized as metropolitan. Non-metros are the remaining ‘Tier 2′ and ‘Tier 3′ cities. Now, a slew of young investors from these non-metro cities are flocking to stock and cryptocurrency exchanges to trade.
Enrollment in non-metro areas
According to Paytm Money, enrollment in the top 30 non-metro cities expanded at a 30% faster rate than in metro cities. Furthermore, 60 percent of new users of INDMoney, an online wealth management platform, are from tier II and tier III cities. This is more than double the 30% figure from only eight months earlier. Since June of last year, crypto trading platform CoinSwitch Kuber has seen a 135 percent increase in enrolment from non-metro cities month over month.
In the meantime, CoinDCX, the country’s first crypto unicorn, has seen a 48.7X increase in user enrolment from tier II and tier III cities in the last six months. To effectively target the local audience, the company aims to focus on local language material. Other methods of regional integration were also proposed by Ramalingam Subramanian, the chief of marketing at CoinDCX. Reaching out to regional influencers both online and offline, and participating in local festive activities, for example.
Despite growth, the future is uncertain.
Although cryptocurrency usage is unquestionably increasing in India, there is still a lot of ambiguity about the country’s legislative future. Xiaomi India decided not to offer cryptocurrency when it launched a full-spectrum loan platform earlier this week. “Of course, crypto is an extremely exciting field that has become the largest buzzword and is performing exceptionally well,” Manu Kumar Jain, managing director of Xiaomi India, said. ”However, we would like to learn more about the regulatory side.”
It’s reasonable that Xiaomi is hesitant to participate in crypto trading in India’s payments and loans industries. From an official policy standpoint, the status of cryptocurrencies is currently uncertain. While officials have developed legislation prohibiting private coins, some are debating whether they should apply the same prohibition to all cryptocurrencies.