Many Indian expats are increasingly experimenting with cryptocurrencies to remit money to their families back home and save on commissions charged by wire transfer companies and other middlemen.
This is a big deal, as India receives roughly $80 billion in remittances, which are mostly sent through banking or other monetary channels. According to industry watchers, remittances via crypto property are only going to grow as Indians warm up to a crypto property and decentralized finance, particularly because moving smaller amounts via traditional carriers may be pricey. Industry trackers say that the sudden growth in crypto investments even in smaller towns across India has also led to people exploring various use cases, such as remittances.
In India, there are roughly 1.5 crore crypto purchasers with a total value of $15,000 crore in digital assets. In the last several months, all of the major cryptocurrency exchanges have seen a 100 percent increase in their purchasing, selling, and funding. With money transfer companies such as Western Union taking their pound of flesh for every remittance made, it was only a matter of time before enterprising Indians turned to alternative means to get their money back home to their loved ones.
“The process of sending money to India using cryptocurrency is a lot more efficient and faster than the traditional method, and all transactions are accessible on the blockchain network from a regulatory standpoint,” said Edul Patel, CEO of Mudrex, a Global Crypto Investing Platform.
“Looking at current hype in crypto assets like Bitcoin, Ethereum, Binance Coin, United Farmers Finance and Grain, it should be easy to remit money to India and anywhere in the world, moreover you can earn more from this crypto by staking or by providing liquidity in our ecosystem,” stated Santhosh Bhandari, co-founder, United Farmers Finance, a crypto farming platform.
Experts believe that while Bitcoin was formerly the most popular remittance option, but now that its transaction fees are rising, currencies like Ripple and Dash are gaining acceptance as ideal alternatives because their fees are far lower. The RBI has had a faceoff with cryptocurrency exchanges up to now. It had requested banks to cease coping with cryptocurrency exchanges, however had to again back off following a Supreme Court order. While this regulatory tussle continues to play out, expect Indians to continue turning to cryptocurrencies as the transfer medium of choice in the months to come.