Though India, the country with the second largest population after China, ranks as one of the highest cryptocurrency adopters globally, it has undergone several changes over the past few years. The country has a bitter-sweet relationship with the ecosystem with the ban on cryptocurrency in 2016 and subsequent legislation on boosting crypto investment. However, Anshul Rustaggi, the CEO of Totality Corp, claims the country is yet to adopt nonfungible tokens (NFT).
Socio-Cultural Barriers to NFT
Rustaggi claims NFT trading in India faces several cultural and legislative barriers where the activity is similar to gambling, as both involve considerable speculation. According to the CEO, most of India’s wealth acquisition directly contributes to social status instead of a long-term investment plan. Thus, negative attitudes in-built into NFT trading are yet to attract the audience, even if the former helped gain economic wealth.
Legislative Barriers to NFT
Apart from the apprehensive attitude of Indians, the country faced several legislative barriers, contributing to the low adoption of NFT. The Indian government implemented several laws and regulations on cryptocurrencies and nonfungible tokens over the past few years. It was only in 2021 that Anurag Thakur, the Minister of State for Finance, announced the new bill on cryptocurrencies, as previous laws were inadequate in dealing with the issues concerning cryptocurrency. The Reserve Bank of India is also seen as ambiguous in cryptocurrency investments in India.
Lakshmi NFT by Totality Corp
Totality Corp launched Lakshmi NFT in 2021, which received a high response marking the drop in NFTs in India. According to Rustaggi, the rewards in USD Coin for holding the NFT attracted more Indians. Such a rewarding scheme made NFT holdings made it a little more than mere speculation. Thus, the Indians promised guaranteed returns, which brought in greater results for Lakshmi NFT.
India’s Anti-Crypto Stance
The Indian government has long maintained its anti-crypto stance, banning crypto investments and NFT holdings. Thus, Rustaggi is apprehensive of the fate of nonfungible token holdings in the country without the regulatory schemes of the government. It seems the low financial literacy of the citizens, complemented by the anti-crypto bills by the Indian government, are the major barriers to the fate of NFTs.
Crypto Awareness Plays a Key Role
With the countries thriving on nonfungible tokens holdings and crypto investments, it is high time India changes its financial trajectory to boost similar investments. However, along with significant changes in government legislatures, adequate awareness and education on the crypto market and its operations are necessary to promote NFTs in India. As Rustaggi claims, it is only through such regulatory moves that crypto unicorns and trade volumes can survive in the country.