India’s Currency Ban Will Push Fintech and Bitcoin Adoption

India is quickly becoming one of the most intriguing regions to keep an eye on. Now that the high denomination banknotes ban has gone into full effect, emerging fintech players see a golden opportunity. At the same time, the Bitcoin price continues to go up in the region, as consumers re desperately looking for new assets.

India Is Emerging As A Bitcoin And Fintech Hub

Depending on how the financial situation in India evolves over the coming weeks, fintech and Bitcoin enthusiasts will come out as the biggest beneficiaries. Banning high denomination banknotes and replacing them with others has caused major controversy in India. As a result of this decision, a lot of consumers, investors,  and traders are looking for cashless solutions. Preferably digital assets, if that would be possible.

India has two reigning e-wallet providers in the form of Paytm and Freecharge. But do not discount MobiKwik and Oxigen, as both companies are close to securing a Chinese investment deal. E-wallets are becoming even more popular than ever before in the country. Any enterprise offering such a service will attract foreign investment funds in the coming months.

To put this currency ban into perspective, Paytm noted a 1,000% user base increase since the banknote ruling went into effect. Moreover, they process over 7 million transactions per day, which is quite a staggering amount. Other e-wallet service providers report similar positive trends, although with less transaction volume.

Now that the “natural presence” of cash in India is no longer a given, the shift to digital payments is anything but surprising. E-wallet service providers have been around for quite some time, yet most locals avoided them as there was no need for them. With a cash crisis plaguing the country, consumers are not waiting around to see if the situation improves. Instead, they are taking matters into their own hands by looking for viable alternatives.

With a vast and largely untapped market at the hands of fintech and Bitcoin companies, things are looking very promising in India. A shift towards more cashless payments has already happened, and the momentum will have a snowball effect on the rest of the country. It is evident things need to change in the country, and now is the time to take advantage of this turmoil.

We have seen the Bitcoin price spike in India across virtually every cryptocurrency exchange. Traders are paying US$1,000 per BTC or more, whereas the global average price hovers around the US$735 mark. Most consumers and traders are keen to get involved in Bitcoin, as it is the only global payment tool not controlled by or linked to traditional finance or government meddling.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.