"Ache Dinn" are still maintaining social distancing with the crypto sector in India. Amid the outbreak of COVID-19 across the world, on March 4, 2020, the Supreme Court of India declared that the "blanket ban" announced by the Reserve Bank of India (in 2018) is unconstitutional . The crypto enthusiasts thought that the "crypto would not be quarantined anymore", and they could start trading in Indian crypto markets. But few of them believed that Corona might not allow them to buy even on stock markets, forget about investment in crypto space. Coronavirus hit the globe so badly that government of India announced complete lockdown fr 21 days. Relief packages were also announced by the Finannce Ministry and Reserve of India. Many of the crypto enthusiasts are assuming that relief packages to combat Corona might virtually affect the Indian crypto markets too.
Crypto markets in India were moving favourably after the court lifted the blanket ban (effect of corona was not serius till then!) . Cryptocurrency exchange Binance had already announced plans to infuse $50 million into Indian crypto markets via "Blockchain For India" Fund which was co-launched by WazirX (an Indian cryptocurrency exchange).CoinDCX, Indian crypto exchange also announced to allocate $1.3 million in the "TryCrypto", the project which aims to educate around 50 million people across the country.
Bitcoin prices started to surge, and the weekly volume of trading on top exchanges in India almost doubled. But, the crypto movement was soon halted when the novel coronavirus increased the toll of deaths, and the global economic slowdown started. On March 11, 2020, COVID-19 was declared a pandemic by the World Health Organisation and suggested the governments of every country of the world to take serious steps to combat Corona.
The hustle-bustle of Indian streets, noises from construction sites, and honking vehicles are quiet since the Prime Minister of India has announced the complete lockdown since last week. To safeguard the people of the country and decrease the number of corona infected cases or instead stop the spread of the virus; unprecedented lockdown of 21 days has been announced, covering every corner of the country.
The lockdown was announced to "break the chain". It has been recommended by the doctors and researchers from every medical institution to maintain the distance to decrease the spread of virus. After the grand success of Janta Curfew of March 21, the government of India asked the factories to shut down, construction activities to stop, prohibited mass gathering thereby practicing the social distancing and confining people at home. This move instantly impacted the stock markets of India (Sensex and Nifty), economy of the country and most importantly affected the incomes of daily wage earners.
After two days of announcing the lockdown, Finance Minister of India, Nirmala Sitharaman announces the relief package of Rs. 1.7 lakh signifying the responsibilities of government to protect the marginalised section from the corona pandemic and nationwide lockdown. She also hinted to announce few more relief packages to combat Corona for micro, small and middle enterprises in the coming days.
Can the crypto sector of India also expect the headline "FM announces relief packages for crypto markets?" Maybe no.! Large corporations or people having enough to spend for the coming months may not expect any big announcement from government. Many of us consider that Indian crypto markets still do not have enough trading volume or won't affect a large chunk of people. But after the landmark decision of Supreme Court, the inflow of significant funds, resuming of various crypto exchanges and a massive infusion of investments lighten up the crypto space of India.
Amid the chaos and warnings, the lockdown can be considered in a way the best time for crypto enthusiasts to think and plan about the strategies to evolve the Indian Crypto markets. It can be stated that crypto space in India does not need any relief packages to combat Corona as it has the potential to rise on its own in a country like India due to following reasons:
Thus, the lockdown may prove as an opportunity for crypto enthusiasts and crypto traders to think wisely and stratergise to invest in crypto markets during the chaotic situation.
This hard stop in the economy is not only faced by India but by the whole world.The financial along with medical emergency (huge demand for masks and sanitizers) might cause the situation of recession in the country. But the potential benefits of crypto markets could counter the ill effects of the economy. The crypto markets have the primary advantage of decentralisation (not backed by any central authority). Bitcoin can act as the saviour as it might save the country from increased price inflation, loss from stock markets shut down and forceful pumping of liquidity by the central authorities of the country. Thus, cryptocuureency must be added as the part of economy management in the present situation.
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