71% of Indians have little or no confidence in cryptos, study finds

A study by LocalCircles, a leading community social media platform, found that 71% of Indians have little or no confidence in cryptocurrencies; only 1% have high confidence. Additionally, 51% want India to roll out its own digital currency. In addition, 54% of Indians do not want the government to legalize cryptocurrencies but tax them like any digital asset held abroad; while 26% said they should be legalized and then taxed in India.

The study, which was conducted from November 2 to 22 in 342 districts, received more than 56,000 responses from citizens. It was carried out amid the buzz surrounding the Centre’s decision to table legislation to regulate currency.

The study further indicates that 87% of the families surveyed have no one who trades or invests in cryptocurrencies.

The first question in the study asked citizens how much confidence they currently have in cryptocurrencies. In response, only 1% said they had “high” confidence; 12% said they had “average” confidence; and 22% said it is “weak”. 49% of those polled said they “have no or no confidence in the currency”. 16% had no opinion. Overall, 71% had little or no confidence in cryptocurrencies while 1% had high confidence. This study question received 9,174 responses, ”the result states.

It was also strongly estimated that the advertisements of various cryptocurrencies, platforms and exchanges do not focus on the risks involved, with 74% of respondents explicitly stating that dangers are not highlighted effectively. Only 5% of those surveyed are in favor of regulating such ads, while 76% want them to be suspended until the regulatory framework is ready, the study found.

During the recent T-20 World Cup, 1 in 3 advertisements were about cryptocurrencies, platforms and exchanges trying to catch the eye. Citizens were specifically asked to what extent they find these advertisements effective in highlighting the risks involved. In response, 52% of citizens said they had done it “completely ineffective”, 22% said “somewhat inefficient” and 6% said “somewhat effectively”. Only 5% of citizens believed that cryptocurrency ads effectively highlighted the risks involved, while 15% did not have an opinion. In total, 74% of Indians believe that cryptocurrency ads do not effectively highlight the risks involved. This study question received 9,942 responses.

According to the study, 51% of respondents support India’s rollout of its own RBI-managed digital currency, while 26% are against it. This indicates that the central bank’s digital currency (CBDC) would be a more trustworthy investment. One in two Indians does not want cryptocurrency legalization but prefers RBI to deploy its own digital instrument.

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Posted on: Wednesday, November 24, 2021, 11:00 p.m. IST

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