After a year of ups and downs, it seems that the Indian crypto market is now stabilizing and is gearing up for an influx of new investors. A milestone was achieved by the Asian country, as it became home to the first physical bank of the crypto industry in the world. Cashaa, a crypto online banking service, has established its first physical cryptocurrency bank for which it collaborated with some partners in India. This milestone became a possibility through a joint venture called UNICAS made between United Multistate Credit Co-op Society, a local financial institution, and Cashaa.
The crypto bank was established in Jaipur, which is the capital of the Rajasthan state in India. In October, UNICAS has made an announcement that it was planning on offering seamless crypto banking services to its clientele. According to the press release issued by Cashaa, the launch of the physical bank in Jaipur is part of their initial rollout that will spread across three Indian states and include a total of 14 locations. These states are the National Capital Region (NCR), Gujarat and Rajasthan and the rollout is expected to happen before the end of January. By the end of 2022, a total of 100 branches will be established by UNICAS.
The chief executive at UNICAS, Dinesh Kukreja explained that physical crypto banks would enable the firm to offer Indian locals custom crypto investment products. Customers who have UNICAS savings accounts will not have a problem in making seamless transfers and transactions in rupees as well as cryptocurrencies. Jumar Gaurav, the chief executive at Cashaa, referred to the development as an essential one, which will help in enhancing the push for making a ‘digital India’. He also said that it was UNICAS’s aim to use this opportunity for highlighting the potential of blockchain technology for improving convenience and security in financial operations.
Simultaneously, they are also hoping to boost crypto adoption across India. This new move is just the latest initiative that has been taken for bolstering crypto use in a country that has proven to be a rather hostile one towards the crypto space for now. Cryptocurrencies had been banned in the country by the Reserve Bank of India two years ago, which had essentially limited the ability of the banks to serve companies in the space. However, in March of this year, the Supreme Court had made a ruling against the ban in question, which set the stage for companies to enter the space once again.
Since then, companies have been making moves and trying to encourage a massive adoption spree amongst the nearly 1.3 billion citizens in India. Earlier this month, CoinDCX, a local exchange had announced the completion of a successful series B funding round where investors like Polychain and Coinbase had helped it in raising $13.9 million. The round adds to the exchange’s first funding venture in March where it had raised $3 million. The exchange stated that the funds would be used for promoting crypto adoption in India.