In a letter, the Blockchain and Crypto Assets Council has requested a meeting with the inter-bank retail settlements and payments body to understand and discuss the issues around the cryptocurrency trade. BACC has also asked NPCI that many of the cryptocurrency exchanges strictly adhere to NPCI protocols and KYC and asked it to restore the UPI service to such businesses.
What is BACC?
What is a Unified Payments Interface?
Quite popular as UPI, it is a real-time inter-bank P2M and P2P payment system created by NPCI. Launched in 2016, UPI boasts 150 million active users till May 2021 and it processed 68 billion transactions worth $460 billion till November 2021. This has made it possible to become a successful mobile phone-based instant payment system.
What led to all this?
It is to be understood that controversies around crypto trading and India’s decision on the same have been around the system since the very beginning. In April when NPCI stated that it wasn’t aware of any crypto platform using UPI, several payment firms stopped their services to the crypto exchanges which resulted in decreasing crypto adoption in the nation.
But now nearly after 2 months, BACC is anticipating resolving the problem by seeking a meeting and inspiring the NPCI to restore UPI services on their platform. This is a new stance to clear the crypto uncertainty in India.
Shed some light on the history of the entire controversy
Earlier RBI, the finance ministry, and the government were anticipating limiting the reach of cryptocurrency until the Crypto Bill gets enacted by the Parliament. The off and on move, like a previous ban on crypto by the Reserve Bank of India, which was later taken back by the Supreme Court had left the industry in dismay.
What to expect from the current letter?
The recent letter to NPCI from BACC aims to set up a conversation and debunk specific problems withholding customers from adopting blockchain.