Gibraltar-based cryptocurrency bank, Xapo Bank, has set its sights on the vast Indian market, announcing plans to provide banking and cryptocurrency services in the country. With a population of over 1.3 billion, India presents an immense opportunity for Xapo Bank, backed by notable investors, including SoftBank, DST Global, and Ribbit Capital. The move comes when India’s foreign inflows have reached an impressive US$15.5 billion in the first quarter of 2023.

Motivated by a commitment to reducing economic inequality in the region, Xapo Bank’s CEO, Seamus Rocca, aims to fill the void left by the absence of conventional banking services in certain parts of South Asia. By offering innovative financial products and services, the bank hopes to empower individuals and businesses with access to reliable and inclusive banking solutions.

Xapo Bank’s competitive interest rates on deposits make it an enticing option for customers in India. The bank provides attractive returns with a yearly interest rate of 4.10 per cent on US dollar deposits and 1.00 per cent on Bitcoin deposits. Interestingly, the daily interest payments on Bitcoin deposits are distributed in the smallest denomination of the cryptocurrency, a satoshi.

With India’s economy predicted to grow by 6.3 per cent by Fitch Ratings, Xapo Bank has positioned itself favorably in this thriving market. Despite a worldwide economic downturn, India’s GDP exhibited strong growth of 6.1 per cent in the first quarter, highlighting the country’s resilience.

However, Xapo Bank faces challenges as it expands into India. The United Kingdom, for instance, has implemented stringent measures regarding cryptocurrencies, including a 30 per cent tax on all cryptocurrency income and the elimination of deductibility for losses. Such regulations could impact Xapo Bank’s operations and profitability in the Indian market.

Nevertheless, Xapo Bank remains undeterred, recognizing the potential of India’s growing economy and the pressing need for accessible financial services. The bank’s expansion promises to create opportunities for individuals and businesses nationwide, contributing to India’s economic development and financial inclusion.

Moreover, Xapo Bank’s entry into India exemplifies a broader trend of fintech innovation and the convergence of traditional banking and digital currencies. As the world becomes increasingly interconnected, financial institutions like Xapo Bank are reshaping the landscape by offering forward-thinking solutions that bridge gaps in financial services, ultimately empowering individuals and fostering economic growth.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

• Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life’s work is to introduce the concept of decentralization to people worldwide.