With the level of technology increases, the demands for digitalization are also increasing. People these days have been able to cope up with the increasing level of production rates to the best possible extent. In addition to the currency which already exists, the digital currency in the form of cryptocurrency is also gaining strength. This is purely because of the reason that bitcoins have become one of the most important sources of performing transactions these days. In such situations, even though the government has not given any legal status to this form of currency, people are in the position to invest.
The first step towards such regulation has been witnessed in the country of India. It was when the country witnessed the inauguration of the first cryptocurrency bank. This crypto bank unit is the result of the collaboration between the two different organizations. These two organizations are Cash and United Multistate Credit Co. Operative Society.
They have been specially incorporated to deal in the currencies which include fiat and cryptocurrency. There has been a spur in the economy of the country since the evolution of this bank. This is a new step forward in the direction of digitalization. The bank offers multiple services at the disposal of the customers by consuming half of the time which is taken up by the remaining banks. It allows its users to apply for loans and at the same time apply for the cash in INR. The entire sum would be available in the minimum possible time. There is a list of benefits that the bank would be offering its ultimate customer.
Easy loan deposit facilities:
The first and foremost advantage of using this loan facility would be to avail of the loan facilities in the minimum time. There would be an increase in the number of usages. The same would help deal with the issues which are related to liquidity.
Security Updates:
When dealing with blockchain the security problem always prevails. There are various steps and multilayer security systems which protect the data on the blockchain. Still, there is a need to garner trust in the favour of the bank and the digital currency of the bitcoins, for which bank takes various measures. This will be helpful in the long run. The bank would be in the position to offer daily updates. At the same time, there would an increased activity in the banking sector
Lending activities will be getting a push:
The domestic lending market has been in slack as economy is facing recession since long. Therefore, in such situations, there is a need to ensure that the lending activities don’t stop. However, with the economy touching the lowest peak, there is a risk of infusing cash. Therefore, this system will be highly beneficial to banks when it comes to lending.
Conclusion
This virtual currency can act in favour of economy and lead to better market sentiment. It can help the users as well as banks to have better liquidity and ensure growth.