According to a recent report released by the leading media outlet The Economic Times, India will continue to lead all the other nations in payments this year.
Crypto in Foreign Inflow of Money
The report further disclosed that this year, the Indian citizens who are working abroad sent to home nearly eighty billion US dollars. With the transactions being conducted by many financial institutions, adoption of crypto in payment process could have saved nearly four billion dollars that were spent as service fees.
For instance, if a person has to send money globally then there is an involvement of a third party who is disguised as financial institutions and who take an amount of the money being shared. Also, these banking systems take so many days to approve these transactions making the process even more monotonous.
Mahmoud Mohieldin, the Senior VP, 2030 Development Agenda, UN Relations and collaborations at the World Bank said that even with the enhanced technologies, payments fees remain very high, dual the SDG target of three percent.
He further added that opening markets to competition and publicizing the use of low-cost technologies will lessen the burden on poor customers.
As per the report, with the introduction of the decentralized blockchain technology, the payment process cannot only elude from higher service fees that are charged by the third parties yet also makes the transactions almost immediate. And the World Bank explains that adoption of cryptocurrency can lessen the service fees to nearly one percent.
Crypto Kanoon took to Twitter and posted eighty billion dollars sent back home and four billion dollars paid as the service fees to the global money transfer firms for sending this cash back to India. And If India adopts crypto it could remove these third parties and save Billions for the country.
Adoption of Crypto in India could be a Game Changer
The chances of India adopting crypto in payments is very low considering the nation’s stance on cryptocurrencies. Back in June this year, the Reserve Bank of India imposed a regulation forcing all the financial institutions to break their collaborations with the crypto-related companies.
Therefore, this brought down the energy in the crypto sector in the nation. But, still, there’s a confusion as some financial institutions are planning to explore how they can use blockchain to facilitate payments. However, this will let them adopt crypto but knowing that the nation’s regulations do not support cryptocurrencies becomes a barrier.
And even if the financial institutions in the country decide to use the decentralized blockchain technology, adoption of crypto may not aid save the services fees observing that those banks will only reduce the time it takes to approve the transactions meanwhile using the same third party.
As the crypto enthusiasts and investors in the country wait for the banks to adopt crypto, those who are planning to send money from overseas can utilize virtual currencies separately.