This good news was found at the very beginning of the year! Crypto Bank Unicus, a joint venture between Casa and the United Multistate Credit Co-operative Society, is set to open 14 branches in India. The bank’s first branch was opened in Jaipur.
Now most of the people didn’t know about this digital currency!! So what is crypto currency? How is it used? How much does it cost? Can cryptocurrency be used in India? What is a digital bank? Many people want answers to these questions.
What is cryptocurrency?
Crypto currency is another type of money with which you can trade or exchange or transact, but it is digital currency and its presence only in electronic devices. It’s important to know that, like all other money, it is not regulated by any government or banking authority.
You can use it all over the world, the whole thing is run by a worldwide network. Each device in this network keeps track of crypto currency transactions and checks their validity. The network is decentralized, which is not managed by any one person or authority. Anyone can participate in this network if they wish. Another thing is that every computer in the network has equal power and rights, which is called peer to peer network.
Is crypto currency transaction is secure ?
Every transaction in crypto currency is encrypted; it is protected by a very difficult mathematical puzzle. Only the complicated computer programming on the network can solve this puzzle. This keeps the transaction secure and makes hacking impossible. Many types of crypto currency are available in the market among them Bitcoin is quite famous. Bitcoin uses SHA-256, invented by the United States National Security Agency.
How transaction takes place ?
An account is required for crypto currency transactions. Each comes with a wallet. There are two keys in the wallet. One is your own private key and the other is for everyone i.e. public key. Now you will send that information to the network by signing with your encrypted private key. Everyone will keep a record and verify this information by checking your public key.
What is blockchain ?
This digital currency is based on blockchain technology. If a transaction is correct, then it is recorded in a block. In this case block means a set of several transactions. The details of each transaction in each block are written like a ledger Blockchain is when many blocks are connected in a continuous manner.
The computer has to solve an encryption problem before inserting the transaction into the block. Of the many computers in the network, the computer that can solve this problem first enters the record in the block. And that informs everyone else on the network. Then it checks the other computers If it is correct, then it goes to the block, This is called Proof of Work.
At present the price of a bitcoin is approx. 18,344.30 US $ or 12,60,981 rupees. But its value at the beginning of 2009 was almost nothing, so it is surely to say that depositing bitcoin is profitable.
What is the advantage of crypto currency?
Low cost: The cost of transactions in crypto currency is much lower because no bank intermediary has to pay for the transaction.
Fast and secure: It takes a long time to transact money in another country with the help of a bank. It can be done in minutes in crypto currency. Money is safe to have encryption. There is very little fear of money being stolen as a result of hacking, a technical matter of the bank means that if the system does not work, the transaction is not likely to stop. There is no upper limit for transactions.
Privacy: One can have as many wallets as one wants and only you will know how much crypto currency you are giving or taking. So no one else will know how much money you have!
Crypto currency is not regulated by any government or bank: it is not under any bank or government, neither the government nor the bank can confiscate this money nor can it control the transaction of this money.
Worldwide acceptance: This money can be used anywhere in the world, Since there is no exchange rate or interest rate, it runs equally everywhere and saves a lot of money and time.
What is the disadvantages of crypto currency?
Prices fluctuate: Its prices fluctuate very quickly, so there is a chance to exchange your bitcoin in low price.
Criminals can take advantage of using it: Any people can easily use it by covering their identity. So there is a chance to use this money in some criminal activities.
Money cannot be refunded: There is no way to fix a wrong transaction.
Need to have good knowledge: If you invest money in it without knowing everything well, there is a possibility of a lot of loss.
Where Crypto currency physical branches are starting in India?
Finally Indian banks are ready to start crypto currency transaction and other services, also they are opening physical branches for digital currency in a few selected cities in India. Indian customers can easily buy different kinds of crypto currency including bitcoin at these digital currency bank branches with Indian rupees. Even customers can avail loans against their crypto currencies from those banks.
These branches are opening with collaboration of ‘crypto banking platform Cashaa and The United Multistate Credit Co. Operative Society (United), as part of Cashaa’s expansion plan in India. The United is a member of the National Federation of Urban Co-operative Banks and Credit Societies Ltd.’
According to Dinesh Kukreja, Managing Director of United Multistate Credit Co. Operative Society,
“Unicus will initially launch the service online and through 14 branches in NCR, Rajasthan and Gujarat by 2021…There are plans to expand to 100 branches soon by 2022…The branches will be able to create, scale and offer customized financial and crypto products for the local Indian market“Dinesh Kukreja
In first attempt Cashaa opens physical crypto currency branches in west part of India such as in Gujrat, Rajasthan cities. Here is the branch details,
Kumar Gaurab, CEO, Cashaa, said, “In addition to banking, these banks will provide all levels of information and guidance on the benefits and protections that Unicus blockchain technology provides.”
“The immediate plan is to open these Crypto Lounges in Delhi, Gujarat, and Rajasthan covering a population of 150 million Indians living in these states.“Cashaa emphasized
But still some legal issues are involved crypto currency uses in India. The Indian government is trying to bring in a law to ban crypto currency in the country, so you need to think carefully before leaning towards this.