Tim Draper, a billionaire investor and Founder of Draper Venture Network, and Draper University, has set his sights on the Indian cryptocurrency startups.
The venture capitalist tweeted on March 22 that the recent reversal of the Reserve Bank of India’s (RBI) ban by the Supreme Court on banks providing financial services to crypto firms will drive a renaissance for the cryptocurrency sector in the country.
In an interview with Inc42 on March 21, Draper stated that during a recent trip to India he “met several Bitcoin and crypto startups”, adding that he “hopes to be able to fund a number of them”.
Draper stressed that timing of the Supreme Court decision is crucial, predicting that the benefits of cryptocurrencies will be highlighted by the global financial system’s deterioration:
“The Supreme Court of India and the Indian government have shown that the best ideas ultimately prevail, and just in time, because the benefits of Bitcoin (BTC) and crypto over current systems will become apparent during this crisis.”
Draper expects that the current crisis in the long term “will allow people to recognize that Bitcoin is simply a better way to hold value and spend money than through our current banking system.”
Crypto Companies Racing to Take Foothold in India
With Binance and WazirX announcing their $50 million “Blockchain for India” fund on March 16, Draper is not the only one looking to invest in India’s crypto sector. CoinDCX also pledged $1.3 million in funding to raise awareness and crypto-adoption initiatives in India on March 12.
Both Crypto exchanges Kraken and KuCoin issued declarations announcing a desire to enter the Indian market.
Within a day of the Supreme Court ruling, both Binance and OKEx had resumed Indian operations through their local partners, WazirX and CoinDCX, respectively.
Despite India’s widespread excitement for crypto, the sector continues to face pending regulatory challenges.
In addition to RBI’s likely appeal regarding the decision of the Supreme Court, India’s parliament has yet to rule on the “Banning of Cryptocurrency and Official Digital Currency Bill Regulation” from 2019.