Since India’s Elon Musk’s Tesla purchased $1.5 billion worth of bitcoin, India’s cryptocurrency exchanges have been plagued by the proliferation of INR deposits and a surge in trading volume. Despite the uncertainty of the cryptocurrency bill that may soon be proposed in Parliament, positive sentiment has swept the Indian cryptocurrency industry.
Indian rupee deposits and transaction volume surge after Tesla Bitcoin purchase news
After Elon Musk’s Tesla revealed the purchase of Bitcoin, Indian cryptocurrency exchanges had high deposits on Monday. According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), Tesla invested $1.5 billion in Bitcoin in January and hopes to accept payments for products and services in cryptocurrencies in the near future.
This has led to an influx of orders from cryptocurrency exchanges in India and the world. Sathvik Vishwanath, CEO of Unocoin, India’s major cryptocurrency exchange, told news.Bitcoin.com on Tuesday:
Since Tesla’s announcement, we have seen a sudden increase in Unocoin’s INR deposits and BTC trading volume. The Indian market did not react quickly before, so this should be a very strong trigger.
“In the past 18 hours, INR deposits have more than doubled. The number of new registrations within the same time frame is what we usually see in a week.” He further shared.
After the Tesla news came out, Wazirx, another major cryptocurrency exchange in India, also saw a similar trend. CEO Nischal Shetty told news.Bitcoin.com: “Compared with other days, we saw a three-fold increase in deposits in the first few hours. Since then, deposits have been on the rise.”
After Tesla’s press release, cryptocurrency exchanges outside India have also experienced high trading volumes, including Binance, Coinbase and Kraken. A Kraken spokesperson told Reuters: “The recent demand growth has far exceeded the expected demand growth and is five times higher than the previous historical high.”
In terms of supervision, the Indian government is preparing to introduce an encryption bill that may ban cryptocurrencies, while establishing a regulatory framework for the digital rupee issued by the Reserve Bank of India (RBI). During the period when it was reported that the government might speed up the implementation of this bill, the central bank said it would announce its decision on central bank digital currency soon. At the same time, the Indian cryptocurrency industry launched a campaign to convince the government not to ban cryptocurrencies.
Then on Tuesday, the Ministry of Finance revealed in Rajya Sabha, the upper house of the Indian Parliament, that the bill has actually been finalized and will be sent to the cabinet soon.
What do you think of the Indian cryptocurrency market being affected by Tesla’s BTC purchase? Let us know in the comments section below.
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