The popular crypto exchange Coinbase has reportedly added support well-known UPI payment instrument in India. The act makes this crypto exchange efficient in the country for the first time. Coinbase began trying its UPI payments a couple of weeks ago and officially launched it at its maiden event in the second-largest internet market in the world last week.
Coinbase said it aims to broaden new product offerings in India. UPI is a new payment infrastructure of the alliance of retail banks, which is now one of the popular ways Indians can transact online. With this initiative, Coinbase allows its users to add funds to their accounts using the UPI network. The company offers $2.65 to every user signing up to incentivize them to check out the Coinbase app.
Coinbase kept the names of its banking partners secret for the UPI payments rollout. Most banks in the country keep scoffing at cryptocurrency transactions after the local central bank expressed its established views on digital assets.
Indian Supreme Court forced the RBI’s ban on cryptocurrency several years. Today, crypto traders need to pay tax on cryptocurrency transactions, whereas banks continue to follow the central bank’s previous direction. It is worth mentioning that RBI officials released a statement, publically calling for more scrutiny of cryptocurrency.
In February, the Deputy Governor of the Reserve Bank alleged that digital currencies specifically aim to bypass the regulated financial system and no underlying cash flow supports it. These currencies do not have fundamental value; instead, they are more like Ponzi schemes and maybe worse than them.
Cryptocurrencies, including bitcoin, have been money-spinning assets so far. These virtual assets work more like gambling contracts or Ponzi schemes. Many people argue that the original Ponzi scheme, devised in 1920, was better than digital currencies from a social perception.
Coinbase serves as an investor in CoinDCX and CoinSwitch Kuber, the two largest Indian cryptocurrency exchanges. The company, which functions in many markets, arrives in India at an exciting time, though it turned down a recent interview request with its executives. Indian government’s decision to start receiving 30 percent tax on cryptocurrency income from traders in the country promoted thousands of people to reduce or stop crypto trading.
According to Brian Armstrong, the Coinbase aims to make a long-standing bet on India. The company has already paid $150 million to initiate the new setup in India and plans to own more than triple its people to 1,000 by this year.
Another Indian crypto exchange, FTX, has also started to expand its business in the country. The competitor of Coinbase engages with a few start-ups in the country and is in talks with MPL, Indian fantasy Sports.
The National Payments Cooperation has refused to acknowledge Coinbase in India. The Indian governing body supervises UPI payments in the nation and does not know any cryptocurrency exchange that uses UPI payment instruments after Coinbase introduced its services in India.
Cryptocurrency is not unlawful in the South Asian market, though the Reserve Bank of India keeps maintaining crypto assets, which needs more scrutiny.