India Experiences Crypto Boom Amidst the COVID-19 Pandemic
The nationwide lockdown has led to a significant increase in crypto usage and general interest. This is undoubtedly a consequence of India’s recent decision to embrace cryptocurrency.
India is experiencing a surge in cryptocurrency interest following an announcement made by the government regarding an extended lockdown.
The nationwide self-isolation and social distancing will continue for another two weeks due to the continued threat of COVID-19.
While the lockdowns are necessary in containing the spread of the coronavirus, the restrictions in movement and labor have crippled economies around the world. However, several crypto exchange executives reveal that the exact opposite appears to be true for the Indian crypto sector, which has experienced significant growth in trading volumes, with new users entering the sphere by the day.
Nischal Schetty, the CEO of Wazirx, explained that Indians are viewing the lockdown as an opportunity to understand how cryptocurrency works.
“With millions of people not having the opportunity to work due to lockdown, crypto is turning out to be an opportunity for Indians to trade and earn from it.” Schetty said.
Schetty also confirmed that the company’s trading volume had been rising rapidly per week.
“In fact, this week we recorded one of our highest daily trading volumes of over $10M.” the Wazirx CEO shared. He also revealed that the crypto exchange hit an all-time high for the number of weekly active users in the last week.
Vikram Rangala, the Chief Marketing Officer of Zebpay, is also experiencing the same increase in traction at his exchange. The rise in users prompted the company to start implementing new work policies and hiring additional people so as to better equip themselves with the demand.
“We decided to start working remotely even before the lockdown and were already working on work-from-home flexibility, so we were able to adapt quickly.”
The Zebpay CMO shared that the company had just experienced another record volume day in the past week. They have also added a mix of new staff and automated technologies to handle the increase in KYC load and deposits.
In addition to the lockdown, other factors may have also contributed to the increased interest towards cryptocurrency as well as in trading volumes. Just last March 2020, the Supreme Court of India lifted the banking restrictions that the Reserve Bank of India (RBI) had imposed on the crypto industry for over two years. The court hearing also held that cryptocurrency is legal within the country. Following this ruling, crypto exchanges began supporting the INR once more.