Future outlook of crypto banks in India:- www.deekpay.com

While regulatory uncertainty continues to be a hindrance, the buzz about cryptocurrencies and crypto-banking in India is growing exponentially. A few months ago, India's central bank, the Reserve Bank of India (RBI), expressed concern over the potentially damaging impact of cryptocurrencies on the country's financial stability. The bank argued that cryptocurrencies should be banned.2021 In July, UK-based cryptocurrency bank Cashaa announced that it would launch operations in India next month. The "Unicas" project is a joint venture between the Multi-State Credit Union and Cashaa, which announced in May 2022 that it was pulling out of the venture in its first attempt to enter the personal crypto-banking space.

So, what will be the future of cryptocurrencies and digital currencies in India? Let's try to extrapolate.

RBI collaborates on blockchain-based financing project

In June 2022, RBI announced plans to integrate blockchain technology in its Core Banking System (CBS) and accordingly undertook a pilot project to understand its feasibility. Accordingly, it is working with top banks in the country such as SBI, HDFC Bank and ICICI Bank to issue digital document-based files based on a proof-of-concept design. The technology partners for the project include Corda Technologies, IBM and SettleMint.Though the Central Bank of India is known for its anti-cryptocurrency stance, Governor Shaktikanta Das has said that blockchain technology can exist independently of cryptocurrencies. If this project is successful, RBI may change its stance on cryptocurrencies in India.

Digital currency trading loses UPI support

UPI has been a major force in driving the shift to digital payments in India and continues to play a key role in the country's digitisation plans. When Coinbase officially launched in India earlier this year, it offered the UPI platform to enable users to trade. Unfortunately, it soon discontinued this support, making it impossible for Indian customers to continue trading through the platform.

Cryptocurrency players such as CoinDCX and CoinSwitch Kuber have also followed suit by offering wallet payment services. Additionally, India's move by NPCI (National Payments Corporation of India) to impose a fixed tax of 301 TP3T and a TDS of 11 TP3T on crypto transaction revenues has further fuelled the uncertainty that has gripped the state of cryptocurrencies.

Unicas continues to expand

Amidst ongoing turmoil and uncertainty, Unicas, the world's first crypto-financial institution to have a physical branch, has opened its third branch in India and plans to roll out more such offices across the country. They allow easy management of cryptocurrencies and fiat currencies through savings accounts. It also offers loans secured against crypto assets.

Unicas remains optimistic about the state of crypto banking in India, even though its initial plan to open 50 physical branches by 2022 seems unlikely to materialise. It has acquired a stake in partner Cashaa, pointing the company in a new direction.

Unicas CEO Dinesh Kukreja said opening physical branches would allow customers to interact directly with the company's staff, which is the need of the hour.

Since many people are not familiar with cryptocurrency news in India, the physical branch will act as a bridge to help build trust. It will allow potential customers to visit the branch, talk to executives, and make a more informed decision about whether to buy cryptocurrency in India.

reach a verdict

While the state of crypto banking in India remains uncertain, the growth of Unicas offers a glimmer of hope. We expect the Indian government and the central bank to introduce appropriate guidelines soon to ensure the expansion of India's crypto base and prevent brain drain abroad.

common problems

Will RBI launch a digital currency in India? According to the latest cryptocurrency news in India, a digital currency for RBI is a possibility and could debut in early 2023. Finance Minister Nirmala Sithraman spoke about launching a digital rupee in the country, which will be a sovereign-backed facility. Which currencies are likely to be backed by Indian banks? If banks get the green light, they are most likely to support all major cryptocurrencies in terms of market capitalisation such as Bitcoin, Ether and Polygon.