71% Indians have low or zero trust in cryptocurrencies as India seeks to block most cryptos in new Bill

New Delhi: As the government is all set to bring a Bill to ban all private cryptocurrencies in India, a survey by LocalCircles has found that Indians currently have low levels of trust in international cryptocurrencies.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is listed for introduction in the Lok Sabha in the winter session, scheduled to begin from November 29, as the government is looking to bar most private cryptocurrencies in India.

LocalCircles is a Community Social Media platform and pollster on issues of governance, public and consumer interest. The study found that 51 percent want India to roll out its own digital currency, 54 percent Indians do not want government to legalise cryptocurrencies but tax them like a digital asset held abroad while 26 percent say they should be legalised and then taxed in India.

The survery found that 71 percent Indians have low or zero trust in cryptocurrencies while 1 percent have high trust.

"In response, only 1% said they have a “high” trust in cryptocurrency. 12% said they have an “average” trust, and 22% said it is “low”. 49% of Indians studied said they have “zero or do not trust at all”. 16% did not have an opinion. On an aggregate basis, 71% of Indians studied have low or zero trust in cryptocurrencies while 1% have high trust. This question in the study received 9,174 responses," LocalCircles report added.

The LocalCircles study received more than 56,000 responses from citizens residing in 342 districts of India. 66% of respondents were men while 34% of respondents were women. 42% of respondents were from tier 1, 33% from tier 2 and 25% respondents were from tier 3, 4 and rural districts.

The study further found that 87% Indian families do not have anyone trading or investing in cryptocurrencies.

"On an aggregate basis, 87% of Indian families do not have anyone trading or investing in cryptocurrencies. This question in the study received 10,117 responses," said LocalCircles study.

74 percent Indians believe cryptocurrency advertisements are not highlighting the risks involved in an effective manner. While only 5 percent  Indians are in favour of continuing cryptocurrency platform advertisements as is, 76 percent want advertising to be on hold till regulations are ready.

LocalCircles added that it will share the findings of this study with key stakeholders in the Central Government, the Reserve Bank of India and all Member of Parliament so public feedback is kept at the forefront as the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is taken up for discussion and approval in the parliament in a few weeks.