New Delhi: Cryptocurrencies can help Indian citizens save as much as $7 billion on remittances and online transaction fees, a report quoted Unocoin CEO Sathvik Vishwanath as saying. As per recent World Bank data, India is the largest recipient of foreign remittances globally. In 2021 alone, India received $87 billion in remittances, with the US being the most prominent source. The World Bank noted that in 2022, that number might grow to $89.6 billion. Vishwanath said that "there is quite a lot that a country like India can achieve from cryptocurrency, including saving on remittances and on online transaction fees."
In an interview with financial news platform Benzinga, the Unocoin CEO said that crypto helps enable instantaneous transfers, free of cost. Vishwanath said that every year, India receives around $100 billion in remittances from family members living abroad. He said that around 7 percent of the amount (around $7 billion) goes into remittance fees and currency conversion, as well as additional fees depending on the region.
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The more remote a town or city is, the higher will be the fee, Vishwanath said. "At the lesser liquidity place, the fees will be higher, and at a place with more liquidity, the fees will be lower," he said.
Therefore, if India adopts cryptocurrencies such as Bitcoin, Ethereum, or Dogecoin, these costs can be significantly lowered, helping India save nearly $7 billion in the process, the Unocoin CEO told Benzinga. Bengaluru-based Unocoin was founded in 2013 and boasts to be India’s first entrant into the Bitcoin industry.
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In India, crypto is considered to be a virtual digital asset (VDA). As per the new tax regime that went into effect on April 1, all gains from the sale of VDAs will face a tax of 30 percent.