The cryptocurrency scene in India has been quite sporadic with multiple announcements that have worked for the industry as well as against it. The recent update from various corporates in India has thrown a positive spin on the industry, with several companies deciding to experiment with virtual assets for better optimization of financial settlements.
People close to major bigwigs in India have revealed that companies like Hindustan Unilever, Reliance Industries, HDFC Bank and ABG Shipyard are trying out new programs for trade finance functions, internal treasury management, and record keeping. One of the members close to the sources stated:
“The cryptocurrency would only be used by the companies and banks internally. It will mainly be effective as a working capital management tool, where rather than actually transferring money, cryptocurrency will be transferred and accounts shall be reconciled at a later date.”
The main aim of these companies is directed to transfer payments that occur in high frequencies. Sai Venkateshwaran, partner and head of CFO advisory at KPMG gave his opinion by saying:
“Several large companies are evaluating various use cases of blockchain, including in areas such as managing intra-group transactions and as a logical extension, looking at its use as a group treasury management tool for more efficient cash and working capital management. Apart from greater efficiency and accuracy, it has the potential to bring enhanced levels of transparency for group treasury management and also cost savings.”
The officials also touched upon the legal formalities involved in bringing cryptocurrencies into the fore by pointing out to the decisions taken by the Reserve Bank of India [RBI]. RBI has been a major decider when it comes to cryptocurrencies in India, as many crypto organizations have cited the regulations as an obstacle to propagate digital assets.
This was put into play when Zebpay, one of India’s popular cryptocurrency exchanges, shut down its services in India due to regulatory issues. After the shutdown, Nischal Shetty, the Founder, and CEO of Wazir X stated:
“We’ve already found our solution to the RBI ban which was P2P and its working really well for us. We don’t see a shutdown as a response to the RBI problem. I think exchanges that adapt to these regulatory uncertainties will emerge victorious in the long run.”
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