The chief executive officer of Binance, Changpeng Zhao says he expects Indian regulators to work long-term with crypto innovators. He said he is very positive about India. They have strong tech talent and a large population, they just need more favorable crypto regulations.
1. The Indian crackdown of Cryptocurrency
However, other entrepreneurs do not have that optimistic look about India’s long-term prospects.
Founders and promoters of Indian blockchain startups do not have enough innovation. People are concerning that the current regulatory battles, crypto bans and the closure of bank accounts for crypto-related businesses are weakening the country’s competitive edge, leading India to lag technologically, well behind the US and China.
Nitin Sharma, the founder of Incrypt Blockchain, says the Indian regulatory ecosystem is not concentrating on decentralized systems like smart contracts, so innovation will be hard to come true at the same pace as in those countries who do allow for experimentation in such areas of the technology.
The government has shown positive signs of supporting blockchain in November when it announced plans for a new national framework supporting the development and integration of this technology. Blockchain can be applied to solve a number of problems, from organizing bookkeeping to optimizing registries, supply chain logistics, and government procedures, etc.
2. The integration of Binance
In spite of the government’s clampdown on crypto, India is still a massive market and a major target for industry leaders who image how cryptocurrency and blockchain initiatives can solve systemic poverty by reaching people who are entirely cut off from the existing banking system because they lack financial services and bank accounts.
The goal is to continue to create solutions and platforms that are accessible and easy to use and to form key alliances.
Malta-based cryptocurrency exchange Binance established a significant bridge to India in November when it obtained the country’s top digital asset platform WazirX after its couple of years shutting down. WazirX’s peer-to-peer (P2P) engine will be integrated into the Binance Fiat Gateway platform in the first quarter of 2020, allowing Indian crypto traders to buy and sell Bitcoin and other digital assets with fiat currencies through Binance’s conversion portal for the Indian rupee.
Mr. Zhao believes the young demographic in India gives an opportunity to adopt and build on new financial technologies, which will play an important role in making India a global blockchain innovation center to also conduct cryptocurrency adoption throughout the larger public in the country.