Dubai-based cryptocurrency exchange ByBit has announced the integration of eRupee’s CBDC and peer-to-peer (P2P) transaction services. The exchange said in an official statement that it has received numerous requests from Indian traders seeking support for eRupee trading. Since eRupee is a digital currency issued by India’s RBI, traders who deal with INR believe that conducting digital transactions using this token protects them from hackers and other financial risks.
ByBit’s eRupee feature for P2P transactions allows merchants to accept payments in eRupee, reducing the risk of bank accounts being targeted by cybercriminals.
In a statement, the exchange said: “We are pleased to introduce Digital Rupee (eRupee) as a payment option for INR users that promotes trust and credibility in every transaction.”
Founded in 2018, ByBit claims to be the second largest cryptocurrency exchange in the world by trading volume, serving over 37 million users.
What is a P2P payment?
In P2P payments, as accepted by Indian exchanges, the seller deposits the payment in the form of a digital currency into the exchange’s wallet, in this case ByBit. The seller determines the selling price of the asset. If the buyer agrees to this set price, the transaction will be blocked on the exchange. The buyer then sends the payment directly to the seller’s bank account, completing the P2P transaction. The seller also confirms to the exchange that the specified amount has been received, after which the exchange releases the digital currency to the buyer.
According to Arjun Vijay, co-founder of Indian exchange Giottas, the system of Indian P2P exchanges began with the release of the RBI circular in 2018 that prevented crypto exchanges from entering into relationships with banks.
To facilitate traditional cryptocurrency transactions between buyers and sellers, buyers deposit INR into the exchange’s bank account and sellers deposit batches of tokens into the exchange’s wallet, Mr. Vijay noted. For trading, cryptocurrencies and INR balances are exchanged through an exchange, which requires the exchange to have a bank account in India.
Mr. Vijay said, “After 2020, all exchanges continued to operate normally and P2P. Seeing this gap, we conducted large international exchanges with Indian clients.
What is interesting about this development?
India has made registration with the Financial Information Unit (FIU) mandatory for all crypto companies. Interestingly, ByBit’s stance on this is unclear.
In March, Apple removed the ByBit app from the Indian App Store. However, you can download the ByBit app from the Google Play Store. Meanwhile, the ByBit web platform is also loaded in some regions of India, but it is not visible in other countries.
Gadgets360 contacted ByBit to clarify the legal status of doing business in India. Your answer is currently pending.
eRupee CBDC current location
CBDC India is currently conducting advanced testing across multiple banks, retailers and wholesalers. RBI views eRupee as a tool to improve India’s cross-border trade and raise INR to international levels.
In June, the volume of e-rupee transactions fell as banks reduced their promotional activities.
In its latest data, RBI said 50,000 users and 420,000 merchants had participated in the CBDC retail trial as of June 2024.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
