A cryptocurrency is a form of digital currency that is independent of any centralized bank. It is an encrypted code that can be transferred digitally using devices such as smartphones. Transactions using this currency are secure and easy unlike traditional card and cash purchases and do not require repetitive authentication. Most vendors and consumers are adopting cryptocurrency owing to the ease of transaction, which is one of the prime drivers for the cryptocurrency market.
The encrypted code assigned for the stores can be scanned through smartphones and cryptocurrency can be transferred from the digital wallet of a purchaser to the digital wallet of the storekeeper. Unlike card transactions, these transactions do not incur service charges from the bank and are instant.
The Supreme Court’s order to assist the RBI ban on crypto commerce has made up the way for the scene up of cryptocurrency-based banks in the country, where customers can keep crypto savings accounts. Aside from getting interested in the cryptocurrency deposit, customers may also opt for rupee loans against crypto, where the cryptocurrency will enact as collateral.
In case the banks commence accepting cryptocurrencies, will the prohibition on crypto trading be raised fully?
There is no ban on Crypto. There was a banking limitation, which was kept down by the Supreme Court in March 2020, stated Nischal Shetty, CEO, WazirX.
Though, London-based online cryptocurrency platform Cashaa has bound up with the United Multistate Credit Cooperative Society to render savings accounts and loans to crypto capitalists.
Speaking on the potential of a crypto banking system in, Shetty said, We consider that in the next 6-12 months, crypto banking will become a reality. One of the better reasons behind this is that banks across the world are already actuating on supply crypto services. Especially in the US, JP Morgan already shares its intent about rendering crypto services, PayPal a FinTech large has proclaimed its crypto service content, Square is already providing crypto services to their customers in the US.
Lately in Singapore, DBS bank has proclaimed its own crypto exchange. We accept that a couple of banks will begin providing crypto services to its customers, he said.
We accept that it will also occur in the banking aspect where crypto will be thoughtful as collateral while fetching loans. We also accept that there will be some crypto startups adjusted to render loans to against crypto, Shetty added.