A new year (fiscal), a new announcement. We have received information from reliable sources who work in prominent exchanges, the Indian exchanges are coming together to create an INR backed Cryptocurrency like the USD Tether.
The move is aimed at reducing banking transactions as users can easily trade on multiple exchanges by just converting their crypto to the INR backed currency currently codenamed “INRUPEE”.
A central body to overlook the distribution of INRUPEE will be setup. In order for exchanges to hold and distribute INRUPEE, they have to deposit equivalent INR fiat to the central body.
1 INRUPEE will always be equal to 1 INR.
“We’ve had enough with the banks. It is not that banks do not want to do business with us. But the few banks which are actually happy to work with us, cannot handle the volume of transactions we have”, a co-founder of a Crypto exchange told CoinCrunch. He did not want to be named.
“Instead of limiting withdrawals, charging high fees, we have decided to start a new currency so Indian traders can happily trade between the exchanges”, another CoinCrunch Insider source revealed.
But would that not hurt the exchanges?
Exchanges make the most profit when traders buy and sell cryptocurrencies on their own platform. Giving an opportunity to traders to arbitrage on multiple exchanges can mean harmful for the business.
One of the executives we spoke to says that they are planning to introduce a fee structure for transfer of INRUPEE, that will keep the arbitrage in check. You will have to pay an average of 100 INRUPEE for one withdrawal which is higher than the current withdrawal fees of INR 30.
The executive said they will have a value based structure for fees. For example you will only pay 10 INRUPEE to withdrawal upto 20000 INRUPEE but you have to pay upwards of 500 coins to withdraw over 2.5 lacs INRUPEE.
Which exchanges have agreed?
Our sources revealed that all of the BACC members have already agreed and a couple other exchanges like Bitbns and Oxybit have joined as well. BACC currently includes exchanges like Zebpay, Koinex and 5 more.
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Update: This was published on April 01, 2018. How many are still here on April Fool’s 2019? Share this now without telling anyone.