Accepting Bitcoin as a valid payment and settlement method in India will give the cryptocurrency considerable legitimacy. While the Indian government has not taken a final position on BTC, less than 1% of the population has used or owns it.
Although the global excitement about Bitcoin (BTC) has reached India, not everyone believes in its long-term viability. Despite the hype in the media, skepticism is evident as most people in India are unfamiliar with BTC.
However, Indian enthusiasts are betting on the potential of the pioneering cryptocurrency. People are not the only optimistic about BTC in India, but businesses also recognize it as a payment option. For example, restaurants, cafés, and spas, among other service providers, have started accepting BTC from their customers.
The Pioneering Cryptocurrency Offers Many Advantages to Indians
In 2009, an unidentified individual or group known as Satoshi Nakamoto invented Bitcoin. This cryptocurrency, automatically produced and stored in the account, emerged to buy and sell goods and services.
Since no conventional authority or economy supports BTC, the market determines its value and exchange rate. Once people have bought BTC, they can store it in a secure digital wallet using their private key and password.
Bitcoin Is Crucial amid the Declining Trust in Traditional Financial Systems
Bitcoin emerged in 2009 after the credit crisis that caused a collapse in the public trust in the authorities. That recession led to a decline in confidence in the financial sector and the rise of substitute methods.
Crypto assets and other independent innovations began to take hold with the decline in trust in traditional systems. A growing number of people and businesses started seeking decentralized and more transparent cryptocurrencies like BTC.
People use BTC so often that many countries accept it as a valid payment and settlement method. For example, its acceptance in India is critical, as it will give the cryptocurrency considerable legitimacy.
In India, fiat money is still the preferred payment option, with most people and businesses operating in the informal sector. Since many do not trust the banking system and financial institutions, accepting BTC would become a more viable alternative.
Indians Can Accept Bitcoin in their Daily Lives in Several Ways
The acceptance of cryptocurrencies like Bitcoin in India can occur through various methods. Investors can purchase them on a corporate e-commerce site or store easily. They can also include a BTC payment service with traditional payment options if they have an online business.
In addition, citizens can convert BTC into Indian rupees (INR) through a cryptocurrency trading platform if they have accumulated enough coins. Finally, they can exchange it for any of the cryptocurrencies available in the country.
India Needs to Face Some Challenges before Accepting Bitcoin
However, there are several challenges associated with accepting BTC that India needs to face first. The main problem is that less than 1% of the Indian population has used or owns it. In other words, few people are familiar with BTC and keep it in their digital wallets.
Another challenge is that the government has not taken any final position on the pioneering cryptocurrency. Although many expect this situation to change soon, it may still affect the future of BTC in the short term.
By Alexander Salazar