Crypto enthusiasts in India can smile as a crypto bank has kickstarted physical operations in the Asian nation. Indians can now have access to various crypto banking services. These include buying and selling digital assets and getting crypto-backed loans through their bank accounts at Unicas.
Unicas is a crypto bank and a joint venture between Cashaa and United Multistate co-op society. The bank started opening physical branches in the country. The first bank will be opening its doors to customers in Jaipur, the capital of Rajasthan state. Other than Jaipur, the bank is planning to offer its services to the customer in 13 other branches. These include Rajasthan, Gujarat, and NCR by the end of January 2021 and is planning to reach 100 branches by the end of 2022.
The venture focuses on building, scaling, and offering sustainable and customized financial and crypto products to potentially hundreds of millions in the local markets. This comes as BTC (Bitcoin) hits its all-time high after hitting $34, 608 in the weekend. The cryptocurrency has even surpassed the $35K mark and is currently trading at $37,500 as of writing. This is very important to the entire cryptocurrency ecosystem as mass adoption continues.
Other than providing financial services, Unicas is planning to offer customers access to learning materials. This is to help them learn the fundamentals of the crypto space. It aims at proving financial services in both fiat and cryptocurrency. Account-holders can save, loan, and spend different crypto assets through banks card. It is important for the customer to not only access instant crypto loans digitally through depositing their cryptocurrency in their Unicas wallets but also request equivalent amounts in Indian Rupees through their bank accounts.
Unicas is targeting to bring on-board at least 25000 customers by the end of the first quarter of 2021. Currently, only the office in Jaipur is operational as the crypto bank set to roll out other 13 branches across India between the 4th and 22nd of January 2021.
Before the launch of Unicas, Cashaa was already providing crypto services to over 200 crypto exchanges, businesses offering crypto and wallets. The joint venture will help Cashaa access regulatory licenses boosting its overall banking infrastructure. In the deal, Cashaa will also be providing its blockchain infrastructure, information, and guidance on security and convenience offered by the blockchain technology.
What Does It Mean To The Crypto Markets?
Will physical bank branches help in boosting cryptocurrency adoption? No doubt, the emergence of physical crypto banks will boost the entire cryptocurrency economy.
Taking India as a good example, with the huge population getting access to BTC (Bitcoin) and other digital assets will lead to an increase in demand and eventually push the prices higher. This will increase the number of investments into space hence we might witness the market cap of the token surging upwards.
Physical crypto banks will not give access to people already aware of crypto but also expose new investors to the markets. These banks aim to prove fundamentals and guide them on investing in the space. It is, however, an open debt on whether such trends will fully decentralize the banking system. Definitely, it will bring innovations in the banking sector.
With such trends, other jurisdictions around the world will likely follow India’s footsteps in incorporating crypto into the banking system as the mainstream gets excited. Such moves will also bring increased interest from government agencies. Governments will likely be very keen on tapping into the multi-billion industry. This will lead to the regulation of precious digital assets. Government involvement will undermine the gains made by crypto in matters of decentralization. Primarily, regulations are implemented to protect investors from criminals. But some are also crypto-friendly.