Zebpay head says people should also understand risks given the volatility in the markets and also consider starting to invest in small portions. Additionally, he says cryptocurrencies should be good news to India given that the country has largest inward remittance market at over $70 billion per year.
Zebpay Head of Exchange, Nischint Sanghavi is of the view that people should put in their money into cryptocurrencies with a view of generating returns in the long term. He also says that since investors in India are active in this market, cryptocurrency can help create more jobs, help collect more taxes, lead to more innovations and certainly help grow economy.
Answering a question about cryptocurrency trends in India with Moneycontrol blog. He said Indians are in the forefronts of the new developments and emergents in the new technology. He said Bitcoin, Bitcoin Cash, Ether, Litecoin, and Ripple have nearly 80 percent of the total India crypto markets.
Nischint Sanghavi said,
“Altcoins as they are referred commonly – gain popularity among Indians. Having seen a price correction in recent times. People have realized that putting money in cryptocurrencies is not about getting rich overnight. But more with a long-term investment horizon”.
He said India is the largest inward remittance market at over $70 billion per year, cryptocurrencies can provide a relieve and thus they make an investment case for Indians. For instance, they could lower transaction costs and render direct benefits to low and middle-class recipients. Additionally, cryptocurrency use cases are many, he said. Including fundraising, trading, store of value and as a mode of exchange and for global transactions.
“In India, there is a potential for direct and indirect job opportunities of more than 1 lakh. However much more globally in the coming year in this industry. Cryptocurrencies can have a $1 trillion market cap in the near future. India can target to get a fair share of this market resulting in leading innovations. Like greater tax collections, job and economic development opportunities”.
However, it is necessary for investors to educate themselves on the opportunities. Also risks and other issues relating to cryptocurrencies, before investing in them. Especially due to volatility, investors should understand the risks. He said the industry should also consider educating users about the overall potential of cryptocurrencies.
Not legal tender
And with cryptocurrencies not being legal tender in the country according to various announcements by the government. He said that does not make them illegal either. Besides, he pointed to the fact that the Reserve Bank of India also does not categorize gold, stocks, and bonds as legal tender but they are not illegal.
“There is an inclination on the Government’s side on regulating the industry.”
India Finance Ministry formed two committees to report on the matter with one expected to submit their report by the end of this fiscal year.