Amid domestic economic issues, alongside a nationwide COVID-19 led lockdown, India resorts to crypto assets. The country’s highest court recently put aside the Reserve Bank of India’s order dated April 6, 2018 that prohibited banks from dealing with cryptocurrency assets, prompting heightened activity in the network.
Founder and CEO of cryptocurrency exchange CoinSwitch, Ashish Shinghal saw a “considerable increase” in trading volumes since the Supreme Court ruling.
Cashaa, a crypto banking services platform, also saw a 800% spike in trading volumes within 48 hours. It also saw a 600+ volume in BTC in the past 24 hours alone.
Experts claim the surge is largely due to circulating rumors about the government possibly declaring digital coins illegal in the country. According to Cashaa CEO Kumar Gaurav, they’re taking advantage of the coronavirus window.
Momentum is still strong in the crypto markets as the world avoids touching banknotes.
India’s Relationship with Crypto Assets
Cashaa’s sales boosted at a daily rate of 250 percent to 450 percent since the Yes Bank collapsed on March 6. The aforementioned company was India’s fourth-largest lender.
The nationwide panic triggered an increase in traditional market trading, such as those in equities and bonds. The coronavirus outbreak recently gathered pace across Europe and the United States as India’s index NIFTY 50 fell by 23 percent in March alone.
Furthermore, the Indian rupee also hit a record low of 77.40 against the US dollar.
India’s Prime Minister Narendra Modi first announced the three-week-long quarantine on March 24. Since then, investor interest in crypto assets like Bitcoin was sustained around the clock.
Some analysts believe that India’s inability to go outside for their businesses will further boost the coin. Investment Advisors and bitcoin trader Justin Gillespie said the asset saves investors from having to go outside for profit.
Daily trading in WazirX increased by 60 percent over the last month. The exchange has received a total amount of 100 crore rupees or $13 million because of this.