Indian cryptocurrency exchanges are seeing an influx of INR deposits and a spike in trading volumes since it was announced that Elon Musk’s Tesla has bought $1.5 billion worth of bitcoins. The Indian cryptocurrency sector is in a positive mood despite the uncertainty surrounding the cryptocurrency bill that may be tabled in parliament soon.
INR deposits and trading volumes rise after Tesla announcementbitcoin
India’s cryptocurrency exchanges faced high deposit volumes on Monday after Elon Musk revealed that Tesla had bought bitcoins. Tesla invested $1.5 billion in bitcoin in January and plans to accept payments in crypto-currency for its products and services in the near future, according to the company’s filings with the US Securities and Exchange Commission (SEC).
This decision has led to a massive influx of orders on cryptocurrency exchanges in India and around the world. Satvik Vishwanath, CEO of Unocoin, India’s largest crypto-currency exchange, said on Tuesday:
Since Tesla’s announcement, we have seen a sudden increase in INR deposits and BTC transaction volume on Unocoin. Indian markets have not reacted so quickly so far, so it should be a very strong trigger this time.
INR deposits have more than doubled in the last 18 hours. The number of new listings in the same period is in line with what we normally see in a week, he added.
India’s other major cryptocurrency exchange, Vazirks, saw a similar trend after the Tesla news. CEO Nishal Shetty said: We saw 3 times more deposits in the first few hours compared to other days. Since then, deposits have tended to increase.
Cryptocurrency exchanges outside India have also seen high volumes following the Tesla news, including Binance, Coinbase and Kraken. A spokesman for Kraken told Reuters: The recent recovery has far exceeded the expected growth in demand, which has increased more than fivefold from previous peaks.
On the regulatory side, the Indian government is preparing a crypto currency bill that could ban cryptocurrencies while creating a regulatory framework for the Reserve Bank of India (RBI) to issue digital rupees. The government would reportedly fast-track the bill, but the central bank said it would soon announce a decision on the currency the CB will issue. Meanwhile, the cryptocurrency industry in India has launched a campaign to convince the government not to ban cryptocurrencies.
On Tuesday, the finance ministry announced in the Rajya Sabha, India’s upper house, that the bill had been finalised and would soon be sent to the cabinet.
What are your thoughts on the impact of Tesla’s acquisition of BTC on the Indian crypto currency market? Let us know your comments in the section below.
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