New Indian Crypto Bank Introduces Possibilities For Crypto AdoptionJanuary 6, 2021
Cryptocurrency has been inching its way into the public’s view for years. Some steps are smaller and others have the potential to change everything. The new crypto bank in India could be one of the most revolutionary steps forward for digital currencies and crypto banking.
Cashaa, in partnership with United Multistate Credit Cooperative Society, created Unicas, a joint venture in which a new physical crypto bank has opened in the city of Jaipur, India. In the official announcement from the Cashaa team, representatives state a monumental achievement from Unicas — it is the first physical crypto bank in the world.
Unicas plans to expand its services throughout January 2021 to a total of 14 branches. By the end of 2022, the team plans to have 100 branches open. The team stated that “If we are planning to move ahead with the aim of digital India, then we cannot hesitate in adopting new technologies and finding innovative ways to bring it to Tier 1 and Tier 2 cities in India.”
Customers will be able to partake in standard banking needs like opening bank accounts. They’ll then also be able to buy and sell cryptocurrencies, obtain crypto-backed loans, and get more information about how blockchain technology works and digital currencies in general.
Unicas aims to draw in around 25,000 customers in the first quarter of 2021.
Indian Government and Crypto
Though the strides of Unicas are not something you can overlook, the Indian government provides a level of uncertainty when it comes to this form of banking. In 2019, the Indian government issued a ban on non-sovereign cryptocurrencies, which left the country at a crossroads. Crypto holders could see jail time if they violated this ban.
However, in 2020, India lifted the ban and cryptocurrency was once again on the market. As of September 2020, reports emerged that the Indian government was again planning to proceed with a new ban on crypto trading. This kind of back and forth hinders progress for crypto banking.
With customers and businesses seeking to legitimize cryptocurrencies, bans and regulations could shut down those markets. The new Unicas bank in Jaipur could help this legitimization process, especially as Bitcoin reached record highs in 2020. These factors contribute to higher crypto banking demands.
Gaurav Dahake, CEO of Bitbns, said, “With time and price momentum around Bitcoin, a lot more clients started demanding them to open up an account specific to crypto trading and banks have started opening them up now.”
The Indian government will now need to adapt to these demands and changes when making big decisions about bans and regulations.
New Possibilities Opening Up
Now that Unicas is leading the way for physical crypto banking, new possibilities are on the horizon. With India being a power player for crypto markets, the country’s decisions will set a new precedent for what’s possible. It could influence other countries, including the United States, to make big changes to their relationships with digital currencies.
With in-person banking allowing for crypto-based debit cards and loans, the crossover between fiat currencies and cryptocurrencies has never been so prominent. Unicas took the first step. Others will follow.
You can expect that more banks will dip their toes into the crypto world. You can also expect new establishments to open up that allow investors and customers to bank in-person with fiat or crypto.
The Crypto Road Ahead
With access, convenience, and security in mind, crypto banks can get a head-start on physical locations within the coming years. Since India is already making progress, it’s time for other countries to get on board. Creating physical locations opens up a new form of competition, but governments must first balance opportunity with caution in a way that fosters consumer safety and facilitates innovation.
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