India is much behind in the race. Being in possession of 19 million out of a total 21 million Bitcoins, the country is in a grim position. America is leading with about 198,109 BTC worth $20.67 billion. Bhutan is not much behind it with 11,055 BTC worth $1.15 billion. Jetking, which is India’s single publicly known Bitcoin owner, is far from that with a mere 12 BTC worth $1.2 million. Having just 2 million BTC left, Indian entities have a difficult ride ahead.
Imbalance is evident in Bitcoin trading volumes. Bitcoin trading in terms of Indian Rupees (INR) on January 19 amounted to around ₹8.57 crore, while in terms of USDT, it was around $2 billion. The figures question India’s position in global Bitcoin holdings. Blue Aster Capital Chief Executive Sidharth Sogani Jain observed that it is not easy having credible information on Bitcoin holdings in India. The majority is presumptions, with that held by the exchanges, not retail buyers. “India is not on the list of those with high Bitcoin holdings because it does not have regulations,” Jain observed.
Sumit Gupta, co-founder at CoinDCX, also opined likewise. He observed that Bhutan, Abu Dhabi, and Japan have leveraged their strengths in a bid to accumulate big Bitcoin reserves. Bhutan is supported by its enormous supply of hydropower, while Abu Dhabi is supported by affordable energy. Despite challenges, India boasts some of the highest retail cryptocurrency usage in the globe. But a lack of definitive regulations is holding back more investment. Gupta suggested that a healthy regulatory infrastructure can unlock enormous participation from institutions. That will make India a superpower in terms of becoming a Web3 nation in conformity with global Bitcoin reserves.
Experts like Rahul Pagidipati, who is the CEO at ZebPay, foresee a Bitcoin gap. He had also worked out that Indians owned less than a single percent of global Bitcoins. With countries in the process of turning Bitcoin into a reserve asset, India is at risk of falling behind.
Pranav Agarwal, Foundership Head of Investors, is optimistic that it is not too late for India. He is in favour of having the government buying Bitcoin as well as establishing regulations that enable companies as well as individuals to invest. He recommends that Bitcoin be treated as a national reserve.
However, Bitcoin trading remains a faraway possibility. Agarwal quoted that prevailing capital controls are hindering free transfer of capital across borders. Ashish Singhal, Co-founder at Coinswitch, shared that cryptocurrency is more of a form of investment instrument in India as compared to a trading instrument.
Overall, although India did not take full advantage of some opportunities in the Bitcoin sector, it is still in a position to do that. The country can realize its full potential with suitable regulations in a bid to position itself in the global economy.
