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The Indian government was struck with multiple new things and the good part is that they have made no delay in launching a government prototype of something that’s going to be a replica of what’s existing in the private sector.
One such initiative that was successful in the recent past that the Government has really been proud about is BHIM app post Demonetisation. To be able to seek inroads in the current turmoil of increasing popularity and usage of Cryptocurrency in India, as per the media sources RBI is coming up with its own cryptocurrency named Lakshmi. Earlier this week, RBI Executive Director Sudarshan Sen spoke about the central bank’s discomfort with Bitcoin, stating, “Right now, we have a group of people who are looking at fiat cryptocurrencies. As regards to non-fiat crypto currencies like Bitcoins, I think we are not comfortable with them.”
Recently Cryptocurrencies have been taken up under deep scrutiny resulting in ban of the same in some major countries like China and Russia. Indian regulatory agency RBI has also issued warnings to the user of bitcoins stating – “The RBI advises that it has not given any license/authorization to any entity/company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc., dealing with virtual currencies will be doing so at their own risk,”
On the other hand, RBI also said to bring in bylaws to govern Cryptocurrency in India putting an end to all the market speculations rising against the usage of Cryptocurrency. One of the biggest worries of RBI while putting regulations to execution is the modus operandi of bringing the cryptocurrency in the purview of existing internet banking ecosystem, which they will fail as all the big brands of cryptocurrency will not agree to be regulated. Seeking a mid-path as a solution to this issue, RBI may launch Lakshmi.
What is Bitcoin?
A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Brief History: In February 2015, the number of merchants accepting bitcoin for products and services passed 100,000. Instead of 2–3% typically imposed by credit card processors, merchants accepting bitcoins often pay fees in the range from 0% to less than 2%. Despite the fourfold increase in the number of merchants accepting bitcoin in 2014, the cryptocurrency did not have much momentum in retail transactions. The European Banking Authority and other sources have warned that bitcoin users are not protected by refund rights or chargebacks. The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and media. Criminal activities are primarily focused on darknet markets and theft, though officials in countries such as the United States also recognize that bitcoin can provide legitimate financial services.
Founded in 2013, Unocoin operates a BTC-INR trading platform that helps Indians to buy, sell, store, use and accept bitcoin. The Startup has consumer base 110,000 customers and is recording a transaction value of INR 20 crore as average revenue each day. It has taken 30 investments from five countries so far and is expected to grow vigorously post Demonetisation of INR 500 and 1000 currency notes.
“Unocoin is responsible for industry-leading innovations such as the Bitcoin Systematic Investment Plan (SIP), Bitcoin Point of Sale (POS) App and Bitcoin Over-The-Counter trading (OTC),” said the company.
Unocoin has launched mobile app on iOS and Android. The app offers 24/7 access to real-time Bitcoin market prices and trading transactions. Interestingly, Unocoin had opened up its API for the Ecommerce companies and online trading companies to transact in Bitcoin currency.