The RBI Ban raised a lot of concerns and questions in the mind of the investors. What am I going to do with my cryptocurrencies? Will I no longer be able to trade in cryptocurrencies ever again in India? Is trading in crypto illegal now? Well, WazirX P2P comes up with a wonderful solution for all of your questions.
WazirX P2P: A P2P Exchange emerges as a solution for the RBI Ban
Here is a message from the team on a medium post:
Namaste Tribe! The RBI deadline has crossed, our banking operations have stopped, but the show must go on (yes, the rhyming was intentional)! We’d promised you that irrespective of RBI’s stand on crypto, with WazirX P2P, you’ll always have a way to cash in and cash out of crypto whenever you want, 24×7! And it’s absolutely legal as well as safe.
WazirX P2P got live yesterday at 3 PM IST. It provides a platform for both the buyer and seller of cryptocurrencies. But before that let us brief on what a P2P exchange is.
How does it work?
Image Source: medium.com/wazirx
In a trade, there’s always a buyer and a seller involved. In P2P, the buyer and seller can deal with each other directly while WazirX acts as an escrow account for holding the cryptos during the transaction so that neither party cheats the other. Here’s how it works:
- WazirX connects the person looking to buy crypto for INR with someone who’s looking to sell crypto for INR
- The seller deposits the crypto with WazirX
- WazirX escrows the crypto for safekeeping during the transaction
- The buyer pays INR to the seller
- WazirX releases the crypto to the buyer as soon we get a confirmation from the seller
Introducing Tether (USDT) to make stability and crazy liquidity happen!
In the P2P business liquidity is everything. It depends on the exchange what existing tools are they using in order to provide liquidity solutions to their customers. WazirX P2P uses USDT( United States Dollar Tether). Tether is a stable coin that is backed up with USD. 1 unit of Tether is equivalent to 1 USD.
WazirX posted in their medium post:
While building WazirX P2P, we realized that since crypto price fluctuations are beyond our control, we needed to bring in a stable coin. Thanks to the amazing crypto ecosystem, there are plenty of stable coin options available! Since we wanted to add the stable coin with the highest liquidity in the global market, we’ve decided to go with Tether (USDT) to use in WazirX P2P. Also, USDT Deposits are live. WazirX P2P allows users to convert INR to USDT and vice versa.
But what if I put my crypto for sale on WazirX P2P and its price drops or rises before it’s sold?
WazirX is launching their USDT market alongside the P2P exchange, this will enable the users to convert their crypto holding to USDT. Now since USDT is a Stable Coin the price of USDT will hover around $1. Once you have converted your crypto to USDT you can later convert it into INR via WazirX P2P.
The P2P Exchanges are emerging as a wonderful solution for countries like India where regulatory norms often create an uncertain environment for the investors. Adding up to that the P2P exchanges will be acting as an agent of fiat transfers, which was missing in traditional exchanges for the time being.
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