Over 7% Indians owned cryptocurrency in 2021, says UNCTAD
Over seven per cent of Indians owned digital currency in the form of cryptocurrency in 2021, according to the United Nations trade and development body UNCTAD, which said the use of cryptocurrencies globally, including the developing countries, has increased exponentially during the COVID-19 pandemic.
The UN body released data on the share of the population in the top 20 economies that owned digital currencies in 2021. Ukraine topped the list with 12.7 pc of its population holding such currencies.
India found itself at the seventh spot.
While these private digital currencies have rewarded some, and facilitated remittances, they are an unstable financial asset that can also bring social risks and costs, the UN agency said.
The agency recently examined the reasons for the rapid uptake of cryptocurrencies in developing countries, including the facilitation of remittances among others.
While cryptocurrencies can facilitate remittances, they may also enable tax evasion and avoidance through illicit flows, just as if to a tax haven where ownership is not easily identifiable.
"Recent digital currency shocks in the market suggest that there are privacy risks to holding crypto, but if the central bank steps in to protect financial stability, then the problem becomes a public one," it said.
It is important to note that the price of Bitcoin has dropped sharply from its all-time high over the past several months, turning investors poorer. Most other prominent crypto-assets too have experienced steeper declines recently.
It added if cryptocurrencies become a widespread means of payment and even replace domestic currencies unofficially would jeopardize the monetary sovereignty of countries.
"In developing countries with unmet demand for
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