Indians are flocking to Bitcoin due to high remittance fees, meanwhile India is digitize the supply chain process

By Selena On May 27, 2020

According to the report from Coinpaprika and OKEx, India’s growing demand for Bitcoin and cryptocurrencies is driven by the need for lower remittance fees and a more stable currency to store value. Because the transfer fee in this country is too high, and the fiat currency is always devalued.

Source: Coin.dance

Bitcoin trading market share in India will increase significantly in the next two years

India is considered as one of the significant labor export markets in the world. In particular, in 2018, there were more than 17 million Indians exporting labor worldwide. And statistically, they sent over $ 80 billion to India in 2018, with a total transaction fee of up to $ 5.67 billion. Because of high transaction fees, Indians are looking for more ways to send money to their countries.

The report stated:

“With loosening restrictions on cryptocurrency usage in India, India might soon become the next Mexico, where the cryptocurrency exchange Bitso has captured more than 2% of the United States-to-Mexico remittance market.”

Ever since the Supreme Court ruled that the Reserve Bank of India was banned from trading with cryptocurrencies,

Since the Supreme Court ruling striking down the Reserve Bank of India’s banking board on cryptocurrencies, there has been increased crypto trading activity in the country. In particular, the number of Indian users accessing the OKEx exchange has increased to 545.56%. Moreover, the number of newly registered users from India also increased by 4,100% in the first quarter of 2020.

Source: Coinpaprika

The reason is straightforward. Because of the unstable Rupee fiat price, it has dropped about 7% against the US dollar since the early days of the COVID-19 pandemic. And perhaps the use of Bitcoin by Indians or cryptocurrencies is to switch to a more stable currency.

APSEZ partnered with the blockchain-based supply chain solution platform TradeLens

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest multi-port operator of India. Through this partnership, APSEZ is planning to integrate TradeLens’s blockchain solutions on its ten major courier management facilities via ports in six Indian states. Of these, four are in Gujarat and one in Odisha, Tamil Nadu, Goa, Chennai, Andhra Pradesh, and Kerala.

APSEZ’s transition to the digitalization of its supply chain is an attempt to reduce the impact of existing traditional supply chain systems. The current supply chain depends heavily on paperwork and manual procedures.

The report quoted an unnamed logistics industry official saying:

“During the pandemic, we realized the price of not digitizing the industry. There will be a mindset change now, and more firms will adopt the technology.”

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