Over the past few days, Live Bitcoin News has discussed the fact that India may be entering its second crypto lockdown. This time, however, regulators are looking to do more than just ban regular banks and financial firms from doing business with crypto enterprises. They’re looking to ensure nobody – and we mean nobody – can ever trade, buy or sell digital currency units again.
India Is Turning to DeFi for Its Crypto Needs
They’re talking about an entire bitcoin ban. At the time of writing, this is all just pure speculation, and no maneuvers have been made to ensure the ban is put in place, but residents are preparing themselves for a potential world without bitcoin and are turning to decentralized finance (DeFi) tokens as a means of keeping themselves safe and secure during these shaky times.
Many understand that their bitcoin can be taken from them should the country work to ensure digital trading becomes a thing of the past. They’ve now gotten a taste for the crypto space and want to remain embedded within it while staying unnoticed. They figure the only way to do this is through DeFi tokens, which work harder to guarantee privacy and monetary independence for their users.
One of the big benefits of utilizing DeFi tokens is that transactions can fully occur without the intervention of third parties. In addition, they replace all bank functionalities with smart contracts given that DeFi derives from Ethereum, and smart contracts are a staple of the ETH blockchain. All contract conditions are coded into the transactions and execute on their own.
Ariel Zetlin-Jones – associate professor of economics at Carnegie Mellon University – explained in a recent interview:
Smart contracts seem uniquely poised among new technologies to facilitate the transformation of assets – one of the most central roles of existing financial market institutions.
These tokens are gaining a lot of heat in India as many traders are now viewing them as the ultimate way to stay anonymous while remaining within the trading spectrum. Ashish Singhal – CEO of Coin Switch, a popular cryptocurrency exchange – comments that these kinds of coins have seen massive trading surges on the platform, while Wazir X – another popular trading firm – has reported similar data. The exchange has recently listed roughly 16 separate DeFi tokens, of which 12 have hit top trading positions over the past few months.
A Surge in Trading
CEO Nischal Shetty stated:
Every week, we are adding a DeFi token. Around $2 million to $3 million DeFi tokens are traded daily, accounting for 25 percent of total traded volumes.
Clearly, these assets are gaining momentum as the regulatory environment in India becomes far less stable. Of course, saying “no” altogether to cryptocurrencies runs the risk of putting India behind when it comes to both money and the new technology supporting it.