India has been viewed by many companies in the past as a potentially lucrative market for investment and penetration. Especially since the country has the sixth largest economy in the world and also one of the youngest populations.
The crypto industry has not been an exception in this matter, and the Asian country already has crypto-unicorns, the best networks and a large number of participants.
However, entry barriers to the country’s ecosystem still persist. In a recent interview, Cardano founder Charles Hoskinson highlighted the main reason his network did not make a foray into the country as it did with Africa.
For the same reason, the CEO of IOHK cited a “lack of clarity regarding the regulation of cryptocurrencies. “According to Hoskinson, this uncertainty” has really hurt the industry, “which otherwise would have been very” promising. “
Earlier this year, Cardano had expanded its blockchain technology in Africa. Right now, various blockchain-based projects are in different stages of development across the continent.
The most prominent of these has been Cardano’s partnership with the Ethiopian government to create an identity system for the country’s school students. This would track your academic performance and other relevant information.
In the interview, Hoskinson also cited India’s huge digital identity system – Aadhar. It maintains a virtual registry of the 1.3 billion inhabitants of the country and its complex supply chains for the mass manufacture of products such as vaccines. According to the executive, these examples show how “invaluable” a blockchain-based solution could have been in these scenarios.
Furthermore, Cardano’s Indian community is also very strong and enterprising, according to Hoskinson. The same, he added, can be evidenced by Cardano’s huge interest groups operating across the country.
The executive also believes that this growth will only “advance further as time passes.”
However, plans to enter India must be suspended as “it is not clear whether cryptocurrencies are legal or not” in the country. Hoskinson added,
“… Happy to collaborate if regulatory clarity improves. India is a very important market that deeply worries us ”.
India is in the midst of a cryptocurrency bill that will be tabled in Parliament in the coming months. This could provide both investors and developers with more clarity on the legal framework of the industry. According to recent reports, virtual assets will be classified as commodities and the government also difficult to build a tax structure around the same.
Still, the industry has flourished expansively across the country. The next step in India’s crypto journey, according to Hoskinson, is achieving liquidity. Since there is no venture capital ecosystem in India, many new projects and companies struggle with financing difficulties, “which create a barrier to growth and social mobility.”
However, the tokenization of these small-scale companies could make it easier for them to raise money. It will also “give people ownership” of what they have invested, Hoskinson concluded.
This is a machine translation of our English version.