More than 5 million Indians are using cryptocurrencies such as bitcoin, ethereum, litecoin, dogecoin and dashcoin to pay for goods and services, a survey has found.
A survey of more than 100,000 Indians conducted by research firm IDC found more than half the population is using digital currencies.
The survey also found that more than 60 per cent of Indians aged 18-34 have used cryptocurrency.
Digital currencies, including cryptocurrencies such Bitcoin, Ether, Litecoin, Dogecoin, Dash and Ripple, are often seen as safer, more secure, faster and more transparent than traditional currencies.
It also is becoming more popular as people try to circumvent currency restrictions and buy goods and other goods using digital tokens.
But despite a surge in demand, there is not enough demand for cryptocurrencies in India to sustain the current growth rate of the country’s economy.
The data shows that the digital market is growing, but only by a small amount.
It is currently about 0.3 per cent in terms of market cap of India’s total economy, according to IDC.
The global market for digital currencies reached $9.2 billion last year, according the World Economic Forum.
India is the third largest market in the world behind China and the US.
India’s market is likely to grow more quickly as it becomes more popular, and it could overtake China’s as the country becomes more mainstream in the global economy, said IDC analyst Rajesh Kumar.
India has seen a boom in the digital space, with companies including e-commerce giant Flipkart, messaging service WhatsApp, and online gaming firm Kotaku announcing plans to open up their business to cryptocurrencies.
But India’s rapid growth has not been matched by strong demand.
About 40 per cent more Indians now use cryptocurrencies to pay their bills, but a recent survey of about 1,000 people showed only 25 per cent had used them to pay online for online purchases.
Digital payments, such as mobile payments, are becoming more common.
A recent survey by the e-residency platform Venmo found more people use online payments than traditional methods such as cash, credit cards, and credit cards.
The average amount of time it takes to pay bills is only about one week.
India was one of the first countries in Asia to legalize cryptocurrencies.
It allows individuals to trade virtual currencies on exchanges and to exchange them for physical currencies, such that they can be converted into cash and then spent.