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UPI emerges as top pick for Bitcoin exchanges in India

UPI emerges as top pick for Bitcoin exchanges in India

Context:

The increasing popularity of Unified Payments Interface (UPI) has prompted bitcoin exchanges to adopt and promote this payment option for buying and selling cryptocurrencies. Bitcoin exchange Zebpay informed its customers in an email that the UPI option is now open on its platform.

  • Zebpay started INR deposits via UPI. One can send money to its registered banks using any of the UPI supported apps like BHIM, GoogleTez, PayTM and PhonePe.
  • Though UPI was always available, it wasn’t promoted on bitcoin exchanges on the assumption that it wouldn’t pick up.
  • UPI is one of the most favoured methods of deposits as it is seamless. Since it is tied up with bank account and mobile number, and all crypto asset exchanges want deposits to come from linked bank accounts, it works for Crypto.
  • UPI is also a free method of deposit since there is no inherent charge for making a deposit.
  • The increased interest in UPI comes at a time when major banks including Citibank and HDFC Bank Ltd have prohibited use of debit, credit and prepaid cards for cryptocurrency transactions.
  • In January, major banks including HDFC Bank Ltd and ICICI Bank Ltd suspended current accounts of bitcoin exchanges.
  • Since then, bitcoin exchanges have opened accounts with smaller banks such as Bandhan Bank Ltd and RBL Bank Ltd to accept deposits.
  • Coinsecure said that due to some problems in its HDFC Bank account, it has permanently removed it permanently, and asked customers to deposit money in their current account held with RBL Bank and Bandhan Bank.

Bitcoin:

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator.

The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

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