7.3 percent of the population in India has cryptocurrencies: UNCTAD report

Tags: Economy/Finance

According to the report of UNCTAD, a UN trade and development body, 7.3 percent of the Indian population held cryptocurrencies in 2021.

Highlight of the report

  • According to the report Global use of cryptocurrencies has increased exponentially during the COVID-19 pandemic, including in developing countries.

  • 15 of the top-20 economies in terms of the share of the population holding cryptocurrencies include developing economies.

  • Ukraine is on the top in the list with 12.7 per cent, followed by Russia (11.9 percent), Venezuela (10.3 percent), Singapore (9.4 per cent), Kenya (8.5 per cent) and the US (8.3 percent).

  • India ranks seventh in the list, while Pakistan is at 15th with 4.1 per cent.

  • The report said that digital currency is being used to fight inflation.

What is Digital currency?

  • It refers to any mode of payment that is done purely electronically.

  • This is accounted for and transferred using an online system.

  • A well-known form of digital money is the cryptocurrency bitcoin.

What is cryptocurrency?

  • A cryptocurrency is a virtual currency used for financial transactions. 

  • It uses blockchain technology for various transactions. 

  • Earlier, the RBI has issued a circular prohibiting use of these virtual currencies.

  • Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.

  • Bitcoin is the first decentralized cryptocurrency.

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