U.K. based cryptocurrency firm, Cashaa partners with India’s banking service provider, United Multistate Credit Cooperative Society, as the latter, introduces banking transactions using cryptocurrencies to 22 physical locations in northern India. According to a blog post on Medium, the two financial firms will operate under a joint venture, UNICAS, to launch the products in December this year.
The UNICAS venture will allow users to invest in cryptocurrency, real estate, gold, and other physical assets directly, buy crypto using cash at any of the 22 physical locations, and take up loans against their digital assets. Cashaa plans to open over 100 physical locations across India in 2021, currently stationed across three states – Delhi, Rajasthan, and Gujarat, with a combined population of over 140 million.
The Indian based bank will provide the physical locations and licenses necessary to operate in the country while Cashaa joins in with experience in the crypto space. Mr. Dinesh Kukreja, Managing Director of United Multistate Credit Co. Operative Society, will lead UNICAS as the joint venture’s chief executive.
“We are the first regulated financial institution in the world with physical branches where users can access crypto products,” Kukreja, CEO, UNICAS.
Kukreja stated the project would allow the company to “scale and offer customized financial and crypto products for the local Indian markets.” The banking location will be reconstructed as crypto launches, allowing crypto transactions using the rupee and asking for loans using your crypto assets.
At launch, the banks will allow transactions, buying, and selling of six cryptocurrencies, including – Bitcoin (BTC), Cashaa (CAS), Ethereum (ETH), Binance (BNB), Bitcoin Cash (BCH), EOS, Litecoin (LTC), and Ripple (XRP).
However, there still is the dark cloud of regulation from the Indian government following the Supreme Court’s ruling – overturning the blanket ban of cryptocurrencies imposed by the Royal Bank of India (RBI). Kumar Gaurav, Founder & CEO of Cashaa, said the confused nature of the government could be the reason “most Indians are not aware or are miss guided about cryptocurrency as an online product.”
“They tend to trust what they see or what the government recognizes and recommends,” he continued. “Also, India is still largely a cash-based economy despite a Demonetization drive. With UNICAS Crypto lounges we intend to address both issues which are slowing the process of cryptocurrency adoption in India.”
The joint venture aims at rapidly expanding its reach across India – targeting over 100 branches serving cryptocurrency customers in 2021. With the traditional finance world merging with the innovative crypto industry, Kukreja aims the partnership will “bring enormous transformation to both Indian fintech and the crypto industry.”
Author: Lujan Odera