Advantages to India of Using Cryptocurrencies Such as Bitcoin
The current scenario of cryptocurrencies in India has been a speculative issue since long but has been more in the headlines ever since the Reserve Bank of India issued a directive to its authorized banks to ban cryptocurrency dealings in INR for its clients.
This has caused some Indian cryptocurrency exchanges to pack their bags to shift the base abroad, so as to evade the regulatory crackdown. The RBI, on April 6, banned the commercial banks from having business relations with the entities that deal in virtual currencies. They were instructed to end the relations (if any) within three months that will lapse on July 5.
However, if seen as future, Cryptocurrencies would rather prove to be more beneficial for the Indian economy than posing any threat to the economy. Following are some of the reasons which suggests, why adoption of cryptocurrencies would be beneficial to India:
Small Merchants Can Benefit From Digitization
With the advent of technology, now people can use internet connectivity on their mobile phones, the advent of Aadhaar authentication and e-KYC, Jan Dhan accounts and more. Furthermore, internet payments and POS machines have also been the key drivers for digitizing payments and banking services.
Although the commission or cost of digital payments may be reducing, it is still a costly affair due to the involvement of intermediaries. Often, third parties like banks etc. act as the intermediaries, and hence, inflate the costs of such transactions.
In addition to this, there may be a number of merchants took to POS machines following the demonetization drive, but still a high number of these merchants are not exhibiting enough interest, despite a huge demand for the same.
With the reducing price of mobile data packs, a host of small-scale merchants will be able to access cryptocurrencies for even low-costing transactions, saving more without having to spend too much on the convenience fee.
Cryptocurrencies make fundamentally a decentralized economy. Hence, a lot of time and resources that otherwise go in securing sanctions from the third party, will not be required in a cryptocurrency economy. Thus, the entire time and effort invested in settlements will no longer be required while buying, for instance, a property etc. Also, transaction carried in cryptocurrencies takes minutes to get completed as compared to Bank transfers which takes hours and even days in some cases.
Cross-Border PaymentsThis has been one of the most talked and impactful advantage of cryptocurrencies over fiat currency that is in banks.
At present, owing to time-consuming and arduous third-party checks, international payments may consume up to 5 business days.
The transfers are not be subject to any levies or exchange rates, letting users derive the maximum value from their own digital assets or virtual currencies.
In Line With Global Economies
Since cryptocurrency is a new and growing domain, the playing field is leveled. Indians, especially the present generation, have an excellent opportunity to be at par with this global phenomenon. Thus, it looks like the perfect time for Indians to start building up their cryptocurrency digital assets and be secured for the future.
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