The Economic Times has reported that several significant Indian Bitcoin players and fintech startup owners are wary that Facebook’s proposed cryptocurrency project may not be all that it seems, and do not believe that it will require banks to transfer money or trade virtual currency.
According to some companies, Facebook’s rumored stablecoin project will be tested in India, and to ensure that it is legally compliant, it may bypass regulations that currently forbid banking channels being used for transactions involving cryptocurrency.
As such, Facebook would be expected to allow transactions happening peer to peer. This would mean, unlike local companies dealing with Bitcoin, Facebook’s system wouldn’t need bank accounts to transfer money.
Indian crypto exchange platform WazirX‘s founder Nischal Shetty said:
“If this (Facebook’s stablecoin) becomes a reality it will change the entire crypto industry… Facebook may not have to worry if the currency operates within their platforms. There isn’t a law which prevents users within a platform from exchanging value, for example, in the form of tokens, between each other.”
Another exchange, RupeeCoin, welcomed the news of Facebook but advised caution, saying:
“Anything like this which displays the usage of the technology by a legitimate player like Facebook or WhatsApp will bring a positive approach for the users. An interesting project to be deployed in India but, at least for us, something to be cautious about.”
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