Indian Bank HDFC Predicts “Legal Access” to Crypto

Key Takeaways

• HDFC’s chief economist feels that cryptocurrency regulation in India will be favorable to investors.
• The report reiterated the plans of a central bank digital currency launch.
• The RBI has recently been pulling strings on the country’s banks to stop servicing crypto businesses.

Major Indian bank HDFC has published a report on cryptocurrencies, weighing the pros and cons they could bring to India. The report comes after the country’s central bank introduced new roadblocks for the industry. 

HDFC Reports on Cryptocurrencies 

HDFC, one of India’s top three banks, has published a report on crypto assets.

“We think it’s a matter of time before Indian investors have legal access to crypto plays,” wrote HDFC’s chief economist Abheek Barua in a paper titled, “Cryptocurrencies: Fad or Forever?” The report came as a positive piece of news for investors fearing a ban. 

Excerpts of the report were shared on social media today. The report noted the increasing correlation between Bitcoin’s price movement and gold. “Though the correlation was weak to start with, it has been rising,” it read.

The report also noted that India plans to launch a central bank digital currency.

Barua expressed optimism in the long-term survival of the space by judging the rise in the number of non-zero addresses. “Tokens are here to stay and are not going away in a hurry,” he added. 

However, the report also raised concerns around the increasing euphoria seen in the rise of Google searches.

The conclusion was that crypto has the “properties of being a good hedge” for portfolio diversification, showing resistance to macroeconomic shock, and has a limited supply like gold.

Central Bank Imposes Banking Hurdles 

The country’s central bank, however, has reportedly asked banks to restrict services to crypto businesses. Many Indian cryptocurrency exchanges are struggling to keep up their payment channels as banks sever ties with them. 

WazirX, an Indian crypto outlet, stopped banking and UPI transfers in place of third-party transfers. The process also added a transaction fee and tax of 1.7% for the user. Many Indian crypto enthusiasts have adopted the hash tag social media campaign “#IndiaWantsCrypto” to advocate for banks to embrace crypto technology.

Some exchanges like CoinDCX, which offers a 0% deposit for bank transfer, take 2-3 days to confirm deposits. The charges for instant deposits are the same. 

It looks like the central bank is enforcing taxes on crypto purchases, as it has proposed many times in the past. In one way or another, the Indian banking industry is closely looking at the crypto businesses. 

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article