Four Ways Crypto Will Benefit India

CryptoWillBenefitIndia

The past year saw an exponential rise in the number of young crypto investors in India. Owing to their dynamic and risk-embracing nature, a large bracket of young investors is interested in cryptocurrency. This relatively new asset class is not only gaining ground in metropolitan cities, but also in Tier II and Tier III cities/towns of India.

However, one question still bothers many prospective investors.

“Will crypto really benefit India?”

While everything has its pros and cons, Crypto’s technological advantage, financial use cases and futuristic prospects already position it ahead of traditional assets. Even from a broader economic perspective, this virtual digital asset class seems more promising. Crypto comes with numerous benefits, and some of these could be quite revolutionary for the Indian economy in the long run.

Offers transparency and security

Our modern banking system is controlled by governments and large centralised financial institutions. Despite significant efforts to make banking secure, it is far from fool proof and rife with frauds and scams, which often involve corrupt intermediaries. Crypto-driven financial systems, on the other hand, are decentralised i.e., no central authority imposes control over your finances. Moreover, the technology backing crypto (i.e., blockchain or distributed ledger technology) is built on the principle of publicly verifiable transactions, i.e., a distributed ledger that ensures transparency of financial operations. All financial records in such an ecosystem are immutable and thus highly resistant to fraud. The transacting parties in such a system have complete control over their transactions.

Makes international payments instantaneous

As of now, most international payments take up to five business days. Such a long processing time is attributed to the existence of third parties (intermediaries) that facilitate and oversee such transactions. In critical times and emergencies, such limitations can be distressing. Cryptocurrency envisions a decentralised global economy where cross-border payments are fast, seamless and secure. These transactions will require no intermediaries and will be exempted from levies and exchange rates. Moreover, the derived value will be maximised. Overall, it will be a complete win-win for the transacting parties.

Reduces the cost of digitising payments

The entire system of payments is gradually moving online. However, the cost of digitising payments is a burden on small vendors. A lot of intermediaries in the online banking system make digital payments less lucrative for small vendors in India. Considering the large number of MSMEs in our country, lower costs can help with greater cooperation from them in digitising payments. Crypto as a medium of payments can reduce the cost of digitisation significantly due to the elimination of intermediaries, which will motivate more MSMEs to come onboard Digital India. It can also help reduce the prices of some essentials like mobile data packs. Clearly, everyone will benefit from that. With the digital space getting more accessible to the masses, it will be upward and onwards for India as a country.

Enables India to align with other international practices

India has been trying to keep pace with developed economies and embracing crypto can help bridge this gap. Since crypto is a comparatively new space, global competition is levelled right now. India can benefit from this and make crucial moves before other nations get a head-start. Exploring crypto could make India a global power in both technology and finance.

Evidently, embracing crypto more openly can lead the Indian economy into a brighter future with the financial system far more superior than now.

If you have any other questions in your mind which you want us to answer then you are free to write to us on support@crosstower.in. We will revert back to you with possible answers.

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