190 banks raided in India: Could Bitcoin be the solution?

India’s Central Bureau of Investigation (CBI) conducted a precise raid on over 170 banks in the country in an attempt to crack down fraud and other illegal activities. Fraud is quite common in the banking sector and the issue highlights the flaws within traditional banking systems. This also suggests that alternatives such as Bitcoin should be considered.

Banks raided in India to root out fraud activity

In India, the 42 reported fraud cases amount to nearly one billion US dollars. The agency dispatched over 1000 CBI officers to investigate the accused and collect evidence pointing to their guilt. These officers were also responsible for questioning the accused across 16 states and 15 nationalized banks. The banks raided in India bore fruit as “incriminating documents” have turned up.

To stop banking fraud or at least reduce its impact the country should consider implementing blockchain-based solutions such as Bitcoin and other virtual assets. However, India has taken a strict approach towards the assets declaring that it is anti-crypto by imposing strict laws that caused the sector to evaporate.

The banks raided in India by CBI is one of the largest coordinated searches in the world. The scale of these cases is huge as reported by the agency. Among these 42 cases, four cases are of more than 1,000 crore Indian rupees ($140M) while eleven cases ranging from 100 to 1,000 crore Indian rupees ($14M -$140M).

Another factor to be noted is that a majority of loan fraud cases were conducted across fifteen banks including India’s largest government-owned lender.

Banks raided in India: Decentralized assets must be considered

Geopolitical factors have a huge impact on traditional finance as seen in Lebanon, Hong Kong and now in India. This makes people consider other things to hedge their funds such as Gold, stocks in oil and Bitcoin.

Bitcoin shows little to no correlation with any other geopolitical factor and remains unaffected by other industries. Peerless networks are not controlled by a central authority and hence risks of fraud are almost non-existent.

The only issue is that India following China has one of the least flexible jurisdictions regarding virtual assets. More than once rumors have spread that India would impose a blanket ban on Bitcoin. These factors make the country less appealing for foreign companies and reduce people’s trust in the sector causing the sector to vaporize.