Thursday, 11 Sep, 2025
By: Anshul Vipat
In India, 7.3% of the population owned digital currency in 2021, ranking seventh in the list of top 20 global economies for digital currency ownership as share of population. The use of crypto currency rose globally at an unexpected rate during the covid-19 pandemic in 2020 and 2021.
In India, 7.3 percent of the population owned digital currency in 2021, ranking seventh in the list of top 20 global economies for digital currency ownership as share of population. The use of crypto currency rose globally at an unexpected rate during the covid-19 pandemic in 2020 and 2021. The United Nations trade body, in its latest report has observed that in the year 2021, developing countries accounted for 15 of the top 20 economies when it comes to the share of the population that owns crypto currencies.
The United Nations Conference on Trade and Development (UNCTAD) in its report has revealed that 12 percent of the Ukrainian nationals hold digital currency, the highest in the world. It was followed by its neighbor Russia which is on the second spot with 11.9 percent of its population having digital currency. UK and Australia has not made to the top 10 as UK is on the 13th position and Australia on the 20th. India is on the seventh position in the list as 7.3 percent of its population is in possession of digital currency. However, India has highest number of crypto owners in the world at 10.07 crore.
Source: United Nations Conference on Trade and Development (UNCTAD)
According to one of the policy briefs of the global body, recent market shocks involving digital currencies indicate that there are private dangers associated with holding crypto, but if the central bank intervenes to safeguard financial stability, the issue becomes a public one. The monetary sovereignty of nations may be at risk if crypto currencies take off as a common form of payment and even informally displace national currencies (a process known as cryptoisation).
In the policy brief "All that Glitters Is Not Gold: The High Cost of Leaving Crypto currencies Unregulated," the authors explore the factors that have contributed to crypto currencies' rapid adoption in developing nations, including the ease of remittances and their use as a hedge against inflation and currency risks. While crypto currencies can make remittances smoother, they may also make it possible to evade taxes and avoid paying them by facilitating shady transfers to places like tax havens where ownership is difficult to trace.
The legality of crypto currencies in India has been a hot topic of conversation. The Government of India has made a number of acts that clearly demonstrate their intention to provide crypto currencies a recognized legal status. The Indian finance minister in the Union Budget 2022 announced that "any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent." Further, tax deduction at source at the rate of 1% has been proposed for transactions involving crypto currency. The minister also stated that taxation of a virtual digital asset does not imply the legal recognition of crypto currencies.
