Cryptocurrency investments prevalent among India’s ultra-wealthy

What

18% of India’s ultra-high-net-worth individuals (UHNWIs) invested in cryptocurrency and blockchain assets in 2021

Why

Global interest in cryptocurrency has increased exponentially, and many cryptocurrencies hit all-time high prices in 2021

What next

The UHNWI population continues to grow in India as does their adoption of cryptocurrency, with a potential “digital rupee” expected in 2022-2023  

The story

The cryptocurrency market is recovering well from 2021 market volatility and an interest in blockchain assets continues to increase. This can be seen amongst UHNWIs in India, 18% of whom invested in cryptocurrency and blockchain assets in 2021, according to Knight Frank’s The Wealth Report. The majority (10%) of UHNWIs from India invested in cryptocurrencies, and the remaining 8% invested in Non-fungible Tokens (NFTs)

India’s UHNWI population has grown by 11% and ranked third globally for the highest billionaire population in 2021. In addition to a high proportion of wealthy citizens, India has the second-highest cryptocurrency adoption rate globally, behind Vietnam. This makes India a country to watch in the future cryptocurrency space.

However, The Wealth Report showed that 33% of respondents said they were reluctant to invest in cryptocurrency due to security concerns. And over 60% of respondents were deterred from investing due to a lack of understanding of the cryptocurrency market.

This may be due to the uncertain regulatory stance on crypto that India has taken in the past. And may have not accounted for this exponential growth; the Indian cryptocurrency market grew 641% from July 2020 to June 2021, according to Chainalysis. Financial literacy is paramount to safe cryptocurrency practices; all crypto-enthusiasts need an understanding of digital tokens, the blockchain, and the cryptocurrency market.

In anticipation of the “digital rupee” proposed by India’s Finance Minister, many local cryptocurrency exchanges in India do advocate for cryptocurrency education. Nischal Shetty, the CEO of WazirX says that “Cryptocurrency should be a crucial part of the financial literacy programs,”. And CoinSwitch Kuber is expected to run initiatives based in India to combat this knowledge gap. India’s cryptocurrency future looks bright for new investors and UHNWIs alike.

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