Banks Out Of Cash: Is Cryptocurrency The Future Of India?

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • The banking sector plays a very important and promising role in the Indian economy.
  • RBI prohibited YES Bank for further payments and withdrawal of only INR 50,000 to be given to each customer for this month’s expenses.
  • A stressing decline of YES bank’s financial capability is due to the inability of the bank to raise capital.

The banking sector plays a very important and promising role in the Indian economy. There are various trusted banks in India which help in mobilizing deposits and channelizing credit and trade activities. Indian banks have not experienced the kind of pressure that they are currently facing.

RBI prohibited YES Bank for further payments and withdrawal of only INR 50,000 to be given to each customer for this month’s expenses. Retail investors are going to the hit of more than INR 3,346 crore on the investment in YES Bank. Retail investors were controlling a 43 percent stake in the bank.

Therefore YES Bank crashes 85 percent of its value to trade at Rs 5.56. A stressing decline of YES bank’s financial capability is due to the inability of the bank to raise capital. This collapse of YES Bank leads to a great inconvenience for the depositors or account holders and created a trust issue.

Under such circumstances, is there any other investment or trading option that can be trustworthy and helpful? However, cryptocurrency can be a very useful alternative as it is a global digital currency. It is expected that crypto banking will become an important part of the financial industry.

Cryptocurrency can help in eliminating the flaws of the banking sector as they are decentralized system which allows you to make secure and independent transactions without the involvement of intermediaries. Unlike the traditional banking system, no entity holds on the money under the crypto world.

Instead, the money is held by a cloud through a blockchain mechanism. A blockchain is a digital public ledger which holds the information of every transaction made as no traditional bank gives you the information regarding the money they hold.

Cryptocurrency offers fewer transaction charges as compared to any other traditional banking transaction, which makes it even more profitable. They also act as a fairer investment option as there are various advantages of cryptocurrency, which can save you from the flaws of the traditional banking system.

  • Eliminating the intermediaries: whenever there is a transaction while purchasing property or car, it is accompanied by a lengthy process of paperwork involving paperwork, receipts, warranty, etc.
    Whereas a contract made by cryptocurrency can eliminate the third party as all the transaction information is in the digital form in a blockchain.
  • Transparency: we give money to the banks without the knowledge of transactions made by the banks. Cryptocurrency provides access to the entire data as everybody in today’s world has internet and mobiles, which means they have a crypto wallet.
  • Eliminates frauds: Cryptocurrency provides complete transparent access to the transaction data as it eventually eliminates the possibility of fraud.
  • Eliminates Identity Theft: The cryptocurrency is involved in “push” transactions. A person only sends the amount of currency that they want to transfer, and no personal information is shared.

We are only at the initials with the advantages of cryptocurrency, which can help us to deal with the limitations of the traditional banking sector and make an effective, profitable, and transaction with the least risk.

As these risks and other challenges remain, such as government regulation and making cryptocurrency practical for daily use, there is no doubt, the potential of crypto is exciting.

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