It is rather evident the financial situation in India is getting out of hand rather quickly. Not only is there a shortage of banknotes in a lot of regions, but over six in ten bank ATMs are not even fully operational right now. If only one in three ATMs are working as they should, things are not looking great by any means. It is expected this ongoing debacle will drive even more people to Bitcoin over the coming weeks.
Nearly Two-thirds of India’s Bank ATMs Are Not Operational
Trouble has been brewing in India for quite some time now, but things are getting out hand rather quickly. The usage of alternative payment options has never been more popular in the country as of right now. To be more precise, extending informal credit and even barter trades are becoming the new norm. Even though Bitcoin demand is surging, it is not being used for specific transactions more often than before right now.
The government’s currency reform in India had to be done, but the progress is being made far slower than anticipated. At this rate, it seems India is slowly going back to Medieval times, rather than enter the Digital Age right now. Cash availability remains at an all-time low, and with so few ATNs effective working as intended, things are going from bad to worse.
Thankfully, banks make cash transactions available at local branch offices, but that is not the best of solutions either. In doing so, banks create long queues for consumers, which leads to more frustration. Adding favorite to the fire is the last thing India’s economy needs right now, as it is a very combustible situation in its current form.
One could argue mobile and electronic payments will boom during this time of financial uncertainty. Unfortunately, the number of merchants accepting Paytm or other popular electronic payments is still relatively small when looking at the bigger picture. Consumers are Googling for merchants accepting these payment methods, but it is not an easy job to find what one needs.
All of this is fueling the fire for alternative payment and investment opportunities. During the first week of turmoil, there were substantial investments in gold and other precious metals. Every since that time, interest in gold has stagnated, whereas the search for Bitcoin has risen steadily. In fact, Bitcoin remains the most popular investment vehicle in India right now and will continue to do so for some time to come.
Another positive development for Bitcoin adoption in India is how the premium prices to purchase cryptocurrency have plateaued. In fact, there has been a small decline after a large peak was reached in the week of November 25. This does not mean people are less keen to pay for Bitcoin, but it does show It is made more accessible due to a lower premium fee.
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