India is the second most populous country with a large mobile and internet user base. It is also one of the countries receiving the highest foreign remittance. On the other hand, India also has a considerable number of unbanked population. All these conditions are ideal for the implementation of bitcoin based financial services and products to meet the requirements.
However, in spite of having all the right conditions for bitcoin to thrive, India still falls behind when it comes to bitcoin adoption. The country with second largest population has just a handful of bitcoin businesses. Various attributes of bitcoin are compared with that of gold. The digital currency shares lots of similarities with the property of gold and it is also known as digital gold or gold 2.0 among the cryptocurrency circles.
Even though the country is known for its obsession with gold and jewelry, the digital version of the same – Bitcoin has not received the same interest in the subcontinent. This trend was also observed by the chairman of Bitcoin Foundation, Brock Pierce who was visiting India to participate in the SingularityU India Summit.
Brock Pierce went on to reiterate the advantages of bitcoin compared to other conventional services. He drove the point home by stating the example of money remittance services. It is known that money remittance services sometimes charge anywhere between 10-14 percent of the total funds transferred as transaction fees and it may vary depending upon the region from which the funds are sent. Bitcoin, due to its low transaction fees, can be an attractive alternative for people. They can save a lot on transaction fees when they use bitcoin for remittance than conventional fund transfer methods.
On the other hand, the Indian bitcoin community, as well as the central bank, are being proactive on the topic of digital currency. Indian bitcoin companies have already received international recognition and they are working within the prescribed framework applicable for money transfer and payments business, even though there are no specific regulations in this regard yet. Even the Reserve Bank of India has called for ideas and products involving blockchain technology for anti-counterfeiting and fraud prevention measures.