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Despite the best efforts of various governments to block the trade and use of bitcoin, the cryptocurrency is flourishing. Not only are government policies unable to stem the use of bitcoin and its entry into mainstream use, but vocal opposition to the currency in various countries is also unable to prevent investors from staking a foothold in the bitcoin market. India’s bitcoin landscape is one such up-and-coming marketplace, with reports detailing on a regular basis how multiple investment firms are expressing interest in the country’s startup bitcoin scene, which has a few implications for businesses.
Interest in bitcoin in India has been bubbling for years, but the government has traditionally issued public advisories against using the currency with both the Reserve Bank of India and the Enforcement Directorate cautioning against it. (This though Prime Minister Narendra Modi is regarded as somewhat of a tech-forward leader, and has spoken at various digital conferences while promoting the growth of IT and communications technology as a part of India’s thriving economy.) But bitcoin seems to be taking off, with or without Modi’s sanctioning. Since Zebpay, India’s first mobile bitcoin wallet, announced the launch of Bitcoin India Alliance last month there has been an uptick in investor interest in the country’s startups. (The Bitcoin India Alliance is intended to act as a coalition of all the bitcoin companies in India, will promote bitcoin adoption, awareness, and will act as the representative for the bitcoin market to the government.) NewsBTC reports that angel investors and venture capitalists have been approaching startups to get the ball rolling on developing bitcoin-based services. The news outlet confirmed with investors including Sasha Mirchandani, the co-founder of Mumbai Angels, and Padmaja Ruparel, President of Indian Angel Networks, that both major firms are evaluating their next moves in the bitcoin market.
An important note here is that Indian venture capitalists are the ones gaining interest in working with Indian startups. Foreign firms — particularly ones based out of Silicon Valley- have already been expressing interest in the market.
This growth in India echoes findings from a report issued by Goldman Sachs in early March which detailed how — despite tightening controls from governments around the world — bitcoin use and trade continues to gain popularity. China is one such market in which bitcoin startups abound in the face of strict usage policies from state banking institutions. Vietnam and Thailand — while they generally share China’s approach to the currency — are seeing upticks in startups as well. It’s almost as if the burgeoning companies themselves are forcing these governments to rethink their modi operandi.
