More than one in every two Indians are not in favour of cryptocurrencies being legalised in India but want the RBI to roll out its own digital currency, shows a survey by LocalCircles, an online community platform.
The study says that 54 percent Indians do not want the government to legalise cryptocurrencies but tax it as a digital asset held abroad, while 26 percent say that they should be legalised and then taxed in India. Around 51 percent of the respondents are keen to see India’s own digital currency/ cryptocurrency, managed by the RBI, while 26 percent are against the move, cites the study.
The study also asked the citizens about the level of trust they currently have in cryptocurrencies. Only 1 percent of the respondents said they have a “high” trust in cryptocurrency, while 49 percent ticked “zero” or “do not trust at all”.
Around 87 percent Indian families do not have anyone trading or investing in cryptocurrencies till date.
LocalCircles completed this study over the last 15 days with the intent to understand the level of trust Indians have in cryptos. It includes 56,000 responses from citizens across 342 districts.
Some 66 percent of the respondents were men. Around 42 percent were from Tier-I cities, 33 percent from Tier-II, and the rest from smaller towns.
The study comes at a time when some two crore crypto investors and countless people interested in the subject are glued to a government notification saying that the Cryptocurrency Bill will be tabled in the Winter Session of Parliament beginning November 29.
An increased investor participation and significant momentum over the last one year have fuelled optimism among stakeholders that the Bill will be in favour of the industry.
In a recent meeting between the Parliamentary Standing Committee and the industry, the concerns and challenges were raised and questions were asked around misleading advertising.
To this, the survey finds that 76 percent of the respondents want cryptocurrency ads to be put on hold till there is a regulatory clarity. Additionally, 74 percent Indians believe cryptocurrency advertisements are not highlighting the risks involved in an effective manner. However, after the parliamentary meeting on November 15, cryptocurrency exchanges have decided to slow down on advertising and rather focus on educating through advertisements.
According to industry estimates, some two crore Indian investors have so far parked around $4-5 billion in cryptocurrencies.