The United multistate Credit Cooperative Society of India has recently collaborated with a fintech firm based in the United Kingdom called Cashaa. The purpose of this collaboration is to launch a banking company that would be focused on crypto and would be known as Unicas Bank. As per the announcement, a total of 34 branches will be opened in Northern India and they have plans of expanding to a total of 100 branches by the next year. Savings are one of the biggest drivers of the Indian economy. Therefore, Unicas will be offering crypto savings accounts to the people, which will pay interest to users on depositing their crypto with them.
This could actually turn out to be the much-needed catalyst to convince the cooperative credit societies in India to become a part of the crypto space, allowing them to make the most of this unique financial opportunity. As a whole, the crypto industry in India has been experiencing tremendous growth when it comes to trading volumes, as well as the number of new clients. This mostly happened after the Supreme Court of the country ruled against the order issued by the Reserve Bank of India for banning banks from providing their services to crypto-focused businesses.
This has occurred back in March of this year. Founder of the Indian crypto exchange called WazirX, Nischal Shetty also made a statement about this recent development in the crypto space. He stated that the crypto ecosystem in the country had recently experienced significant growth since they had removed the ban on crypto trading. This ruling was made in India just before the global COVID-19 pandemic made itself known in the country and this provided people with a small respite to investigate crypto before making up their mind about investing in it.
Apifiny is a liquidity and crypto solution provider based in New York and its CTO, Ashu Swami said that this growth had occurred because of the widespread believe that Bitcoin (BTC) is also becoming a safe haven like gold and other assets. Moreover, it has also made it easier to make remittances from other countries. Swami also shed some light on the major volatility of the Indian Rupee, which has seen a decline of 80% in the last decade, as opposed to the USD. Swami said that due to its high transaction costs, trading in Gold was a bit of a hassle and 2016’s demonetization had also caused a slump in real estate in the country.
Moreover, she also shed some light on the stock market, noting that there had been a lot of high valuations, which meant that there will be a correction coming quite soon. Considering all of these factors, it is not surprising that notable international crypto exchanges have seen a major increase in traffic from Indian users. In fact, the growth is about 5 to 10 times for the year. This has also benefitted some of the local Indian crypto exchanges, as they experienced a 10-time increase in their registrations.