A study conducted by a leading community social media platform LocalCircles has revealed that 71% Indians have low or zero trust in cryptocurrencies; only 1% have high trust. Also, 51% want India to roll out its own digital currency. Further, 54% Indians do not want the government to legalise cryptocurrencies but tax them like any digital asset held abroad; whereas 26% said they should be legalised and then taxed in India.
The study, which was carried out from November 2 to November 22 in 342 districts, received more than 56,000 responses from citizens. It was conducted amidst the buzz about the Centre’s move to table a legislation to regulate the currency.
The study further said that 87% of the respondent families do not have anyone trading or investing in cryptocurrencies.
‘’The first question in the study asked citizens about the level of trust they currently have in cryptocurrencies. In response, only 1% said they have “high” trust; 12% said they have an “average” trust; and 22% said it is “low”. 49% of the respondents said they have “zero trust or do not trust the currency at all”. 16% did not have an opinion. On an aggregate, 71% had low or zero trust in cryptocurrencies while 1% have high trust. This question in the study received 9,174 responses,’’ says the finding.
It was also strongly felt that advertisements of various cryptocurrencies, platforms and exchanges do not focus on the risks involved, with 74% respondents explicitly stating that the hazards are not highlighted in an effective manner. Only 5% respondents were in favour of regulating these advertisements, while 76% want them to be put on hold till the regulatory framework is ready, revealed the study.
During the recent T-20 World Cup, 1 out of 3 advertisements were of cryptocurrencies, platforms and exchanges trying to grab eyeballs. The citizens were specifically asked how effective they found these advertisements in highlighting the risks involved. In response, 52% of the citizens said they did it “completely ineffectively,” 22% said “quite ineffectively” and 6% said “somewhat effectively.” Only 5% of the citizens believed that cryptocurrency advertisements are highlighting the risks involved effectively, while 15% did not have an opinion. On an aggregate, 74% Indians believe cryptocurrency advertisements are not highlighting the risks involved in an effective manner. This question in the study received 9,942 responses.
According to the study, 51% of the respondents support India rolling out its own digital currency which is managed by the RBI, while 26% are against it. This is an indication that the Central Bank Digital Currency (CBDC) would be a more trustworthy investment. One in two Indians does not want cryptocurrencies legalised but favours RBI rolling out its own digital instrument.
