In September this year, India will host the G20 summit, which will focus on the regulation of digital currencies. This meeting could be a turning point for India in terms of gaining full access to cryptocurrencies.
The US Congress is imposing tight restrictions on the market, and Europe has passed laws to control virtual assets. Over the past few months, various governments have restricted the operation of cryptocurrency exchanges.
As of 2021, India has pacts with Australia, UAE and Mauritius. Negotiations are also underway with the European Union, the UK and Canada.
The International Monetary Fund expects India to grow faster than other major emerging and developed economies this year, with a gross domestic product growth rate of 5.9%. By comparison, economic growth in Germany and the UK is projected to stagnate and the US economy is expected to grow by only 1.6%.
A study by the Centre for Economics and Business Research shows that if India maintains its economic progress, it could surpass Germany as the fourth largest economy on Earth by 2026, and replace Japan in third position in 2032.
According to the Organisation for Economic Co-operation and Development's 2021 data, India has more than 900 million people of working age. According to Capital Economics, the workforce could surpass that of China in the coming years. In light of this promising situation, Indian authorities are keen to develop international regulations for the cryptocurrency sector. If India can work out and ratify unified legislation on cryptocurrencies at the G20 summit, its citizens will be able to access digital assets freely.
India is currently among the top five countries with high use of virtual currencies. The only thing preventing full acceptance of cryptocurrencies by the public is an unambiguous legal framework, which could be established at the G-20 summit this September.
