A new study by crypto research platform Coinpaprika and crypto exchange OKEx finds India’s large remittance market would benefit from the use of Bitcoin and XRP as borderless payment solutions.
The report looks at the current role of cryptocurrencies in facilitating transactions between the US and Mexico. Researchers highlight the fact that Mexican cryptocurrency exchange Bitso now processes more than 2% of all remittances in the US and Mexico corridor. Bitso is using XRP as a bridge currency to process payments through Ripple’s On-Demand Liquidity platform.
The researchers expect India to follow the footsteps of Mexico since many people in the country are already turning to crypto assets to convert the rupee to Bitcoin and then to US dollars on peer-to-peer trading platforms like LocalBitcoins and Paxful.
“Using Bitcoin or other cryptocurrencies, such as XRP, as a cross-border payment medium, Indians can save a large number of remittance fees.”
The Coinpaprika and OKEx report also notes that India is the largest migrant remittance country. The study says the huge demand for cross-border payments along with the loosening of government policy could help drive the growth of cryptocurrencies in the country for many years.
On March 4th, the Supreme Court of India ruled to lift the ban on cryptocurrencies which was enforced by the Reserve Bank of India in April of 2018. The crucial ruling allows banks to take on crypto exchanges, companies, and other entities as clients.