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High transfer fees and a shaky rupee can drive crypto adoption in India

May 27, 2020

A recent report highlights that India’s growing demand for cryptocurrencies is being driven by the need for lower shipping rates and a more stable currency to store the value.

In cooperation with Coin Paprika, OKEx examined the Indian cryptocurrency markets and estimated that the global share of cryptocurrency transactions in India will increase significantly over the next two years.

Switch to a cheaper payment system

There are more than 17 million Indians who work abroad and sent more than $ 80 billion home in 2018. They paid up to $ 5.67 billion in transaction fees to intermediaries involved in the transaction.

High transfer fees and a shaky rupee can drive crypto adoption in IndiaHigh transfer fees and a shaky rupee can drive crypto adoption in India

High transaction fees are forcing Indians to find alternative ways to send money to their country. The report says India could soon be the next with easing restrictions on cryptocurrency use in India Mexico, where the Bitso crypto exchange has already conquered more than 2% of the transfer market from the United States to Mexico.

Since the Supreme Court ruling lifted the Reserve Bank of India’s ban on cryptocurrencies, cryptocurrency trading activity has increased in the country. OKEx visits from India increased by 545.56% and newly registered users from India increased by 4,100% in the first quarter of 2020.

Cryptocurrencies as a means of avoiding currency regulations

Another big problem for Indians is the unstable price of the Indian rupee against the US dollar, which has fallen by around 7% since the beginning of the coronavirus pandemic. Indians also find it difficult to convert Indian rupees into a more stable currency due to complex exchange regulations.

This is another reason why Indians turn to Bitcoin (BTC) and other cryptocurrencies to exchange their money. However, according to the report They mostly use cryptocurrencies to switch to a more stable fiat currency.