India 7th highest in digital currency ownership

Last updated on August 11th, 2022 at 01:52 pm

India has become the 7th highest country in digital currency ownership, according to the United Nations (UN). In 2021, 7.3 per cent of the Indian population owned assets in the form of digital currency.

Reportedly, the use of cryptocurrency increased rapidly during the Covid-19 pandemic. As per the UN data, 15 of the top 20 economies owned cryptocurrency in 2021. The UN trade and development body UNCTAD (United Nations Conference on Trade and Development) stated that Ukraine topped the list with 12.7 per cent, followed by Russia with 11.9 per cent, Venezuela with 10.3 per cent, Singapore with 9.4 per cent, Kenya with 8.5 per cent and the United States with 8.3 per cent. However, many Countries have also taken several steps to discourage the widespread use of cryptocurrencies. In the United States of America (USA) or the United Kingdom (UK), cryptocurrency transactions are taxed as capital gains.

It is important to note that cryptocurrencies and non-fungible tokens (NFTs) are presently unregulated in India. Cryptocurrencies use a decentralised system to record transactions.

The UN body also published 3 three policy briefs on Wednesday. The first brief titled “All that glitters is not gold” talked about the reasons for the rapid uptake of cryptocurrencies in developing countries. The UN also spoke about the risks of digital currencies.

The second policy brief titled “Public payment systems in the digital era” talked about cryptocurrencies’ financial stability and security-related risks. The UN body also urged authorities to maintain the issuance and distribution of cash.

The third policy brief titled “The cost of doing too little too late” talked about tax evasion and avoidance. The UN body urged authorities to take action to curb the expansion of cryptocurrencies in developing countries. The body further called for restrictions on advertisements related to cryptocurrencies.