Led by Bitcoin, the global cryptocurrency market has zoomed past $2 trillion in market capitalisation amid a surge in institutional demand.

Bitcoin alone has contributed more than $1 trillion after its price more than doubled in 2021 and is currently hovering around $57,000 per digital coin.

Advertisement

The other key cryptocurrencies — Ethereum, Binance Coin, Polkadot, Tether and Cardano — have a combined value of about $422 billion.

The electric car company Tesla has announced to start accepting Bitcoin as payment. Tesla has already invested $1.5 billion in Bitcoins.

Tesla CEO Elon Musk said late last month that people in the US can now buy a Tesla with Bitcoins, and the option to pay with the popular cryptocurrency will be available to other countries later this year.

According to Shivam Thakral, CEO, BuyUcoin, the digital assets have beaten every other asset class as Bitcoin and Ethereum have grown 100 per cent and 190 per cent this year, respectively.

“The growing global support for crypto industry is not surprising as think tanks/institutions across the globe have realised the importance of digital assets and want to take first mover advantage. There is no other asset class in the world which can provide such a strong hedge against inflation,” Thakral said in a statement on Wednesday.

In India, with Union Finance Minister Nirmala Sitharaman saying that all windows on cryptocurrencies will not be closed down, industry stakeholders last month said that a positive move at this point can unleash a host of opportunities for the country.

India’s leading cryptocurrency players, represented by IAMAI (Internet and Mobile Association of India) have appealed to the government of India not to ban cryptocurrency, saying that a robust mechanism to regulate the ecosystem is needed.

The government has listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for introduction, consideration and passing in the current session of Parliament.

Reports indicate that India probably aims to launch its own digital currency i.e. Central Bank Digital Currency (CBDC).

This measure will be in line with many central banks which have begun planning to issue their own digital currencies.