Indians are waiting for access to crypto banking services as the British financial technology company Cashaa has entered into a partnership with the United Cooperative Credit Multi-Country Association in India to launch crypto-focused bank Unicas, which originally opened 34 branches in northern India and plans to expand to 100 branches. by year Next. .

Given that India’s economy is largely focused on savings, Unicas will also offer savings accounts for cryptocurrencies that pay interest on the deposited cryptocurrency. This can act as a catalyst for credit cooperatives in India to enter the market and get the most out of this opportunity.

But in general, the Indian cryptocurrency industry has seen tremendous growth in volume and new customers since the Supreme Court lifted a two-year ban on banks offering currency exchange offers in March 2020. Nishal Shetty, founder of WazirX, an India-based cryptocurrency exchange, told Cointelegraph . :

The Indian cryptocurrency ecosystem has grown exponentially since the Supreme Court lifted the ban on cryptocurrency banking in India. […] The positive ruling was immediately followed by isolation due to the COVID-19 pandemic. This period also gave people more time to read and participate in coding. ”
Ashu Swami, technology director at Apifiny for New York’s cryptocurrency and solutions provider, attributed this growth to the growing evidence that Bitcoin (BTC) is becoming a haven and how easily cryptocurrencies can transfer money to the country. “Senders realize that virtual currencies are a more efficient way of transmitting information,” hence the growing demand. He added:

“The INR has been very volatile, having weakened by more than 80% against the US dollar over the past decade. Gold is extremely difficult to trade and has high transaction costs; properties decline after trading was canceled in 2016; the stock is at its highest level, and many believe it is. It should be corrected at any time. ”
As a result of these factors, according to statistics from Apifiny, almost all major international cryptocurrency exchanges reported a five to ten times increase in traffic from Indian users in 2020. Meanwhile, local crypto exchanges in India registered a tenfold increase. Registrations in 2020, 2.5 times the global average growth of 400% compared to last year.

Entrance of major players to the Indian market
Since Binance acquired WazirX, Bain & Company financed CoinDCX, and Polaris Capital began investing in the cryptocurrency market in India, it is clear that the major players have recognized the fundamental potential of the Indian cryptocurrency market and have begun to allocate capital to participate. In this growth.

Even Tata Consultancy Services, an Indian multinational IT consulting company, launched a smart quartz solution in July, which helps financial institutions offer cryptocurrency trading. Shetty believes that all this builds trust in the industry: “TCS works with large companies as its customers. We expect that large financial institutions will probably start a pilot project with this in order to fully implement their crypto offer for their customers.

This indicates that large Indian banks are interested in entering the industry in the same way as DBS Bank, the largest commercial and retail bank in Singapore, has done: by launching cryptocurrency and depository services. Even PayPal, which has announced that it will start allowing cryptocurrency payments in 2021, is likely to increase the number of investors in India.

Previously, PayPal did not have a steady entry into the Indian market, not even with paper payments. Technically, the Reserve Bank of India has never banned the company from operating in India, but in 2010 PayPal stopped offering its services. Swami said that this was due to the fact that the licensing standards and rules of “Know Your Customer” India were too cumbersome, and thus were in conflict with their usability of clients. In 2017, PayPal launched a new version for India, but the market was already saturated with local startups. Swami believes that cryptocurrency can open up a new opportunity for PayPal:

With the right mix of events, such as the Indian government allowing virtual currencies, and the local startups slowly adopting blockchain (as it seems to be), PayPal may be in a unique position to streamline cryptocurrency. Sellers agree to call PayPal and this time invade the Indian market. . ”
India’s growing cryptocurrency industry is also driven by innovators who develop new products for Indian investors in line with their investment behavior, which is the reference.

Source: CoinTelegraph