Dubai-based ByBit integrates eRupee CBDC support: details
Dubai-based ByBit cryptocurrency exchange has announced the integration of eRupee CBDC with its peer-to-peer (P2P) transaction service. In an official statement, the exchange said that it has received multiple requests from Indian traders urging support for eRupee transactions. Since eRupee is India’s digital currency issued by the RBI, traders trading in INR believe that processing digital transactions in this token can protect them from hackers and other financial risks.
ByBit’s eRupee feature for P2P transactions allows merchants to accept payments in the form of eRupee, thus reducing the risk of cybercriminals attacking their bank accounts.
“We are excited to unveil Digital Rupee (eRupee) as a payment option for our INR users, thereby promoting trust and reliability in every transaction. This initiative is expected to attract a wider base of traders to the platform,” the exchange said said in his announcement.
Founded in 2018, ByBit claims to be the world’s second-largest cryptocurrency exchange by trading volume, with over 37 million users.
What exactly is P2P payment?
With the P2P payments used by Indian exchanges, the seller deposits payment in the form of cryptocurrency into the exchange’s wallet, in this case ByBit. The seller sets a selling price for the asset – and if a buyer accepts the set price, the deal can be recorded on the exchange. The buyer then sends the payment directly to the seller’s bank account – completing this P2P transaction. The seller also confirms with the exchange that the set amount has been received, at which point the exchange releases the crypto to the buyer.
According to Arjun Vijay, co-founder of Indian crypto exchange Giottus, Indian exchanges launched this P2P system in 2018, when the RBI circular was issued banning crypto exchanges from establishing banking relationships.
Vijay noted that to facilitate a traditional crypto transaction between buyer and seller, the buyer deposits INR into the exchange’s bank account and the seller deposits the batch of tokens into the exchange’s wallet. For trading, the balance of crypto and INR is swapped through the exchange, but for this, the exchange must also have a bank account in India.
“After 2020, all the exchanges went back to normal mode. WazirX continued to operate on both P2P and normal mode. And seeing this loophole, all the major international exchanges with Indian clients launched P2P transaction system,” Vijay noted.
What makes this development interesting?
India has made it mandatory for all crypto-related companies to register with the Financial Intelligence Unit (FIU). ByBit’s status in this regard, interestingly, remains unclear.
In March, Apple removed the ByBit app from the App Store in India. However, the ByBit app is available for download in Google’s Play Store. The web platform for ByBit is also loading for some in India and not appearing for others.
Gadgets360 has reached out to ByBit for clarification on the legal status of conducting its business in India. Their response is yet to be forthcoming.
Where does the eRupee CBDC stand now?
India’s CBDC is currently undergoing advanced testing, with multiple banks, retailers and wholesale traders. The RBI is looking at the eRupee as a tool to improve India’s cross-border transactions and take the INR to an international level.
In June, eRupee activity declined after banks slowed down their promotional activities.
The latest data from the RBI states that as of June 2024, 50 lakh users and 4.2 lakh merchants participated in the CBDC retail pilot.
