Dubai-based ByBit adds support for eRupee CBDC after receiving feedback from Indian merchants
Founded in 2018, ByBit claims to be the world’s second-largest cryptocurrency exchange by trading volume, with over 37 million users.
Dubai-based ByBit crypto exchange has announced the integration of the eRupee CBDC into its peer-to-peer (P2P) transaction service. According to an official statement, the exchange received numerous requests from Indian merchants seeking support for eRupee transactions. As the eRupee is India’s RBI-issued digital currency, merchants dealing in INR believe that conducting digital transactions in this token can protect them from hackers and other financial risks.
This eRupee feature for ByBit’s P2P transactions will enable merchants to accept payments in the form of the eRupee, reducing the risk of their bank accounts being targeted by cybercriminals.
“We are thrilled to introduce the Digital Rupee (eRupee) as a payment option for our INR users, promoting trust and reliability in every transaction. This initiative is anticipated to attract a broader range of merchants to our platform,”
Founded in 2018, ByBit claims to be the world’s second-largest cryptocurrency exchange by trading volume, serving more than 37 million users.
What Exactly is P2P Payment?
In the P2P payments adopted by Indian exchanges, the seller deposits cryptocurrency into the exchange’s wallet, in this case, ByBit. The seller sets a sale price for the assets, and if a buyer agrees to the price, the deal is locked on the exchange. The buyer then sends the payment directly to the seller’s bank account, completing the P2P transaction. The seller confirms with the exchange that the payment has been received, after which the exchange releases the cryptocurrency to the buyer.
According to Arjun Vijay, co-founder of the Indian crypto exchange Giottus, Indian exchanges launched this P2P system in 2018 after the RBI issued a circular restricting crypto exchanges from having banking relationships.
Vijay explained that in a traditional crypto transaction between a buyer and seller, the buyer deposits INR into the exchange’s bank account, and the seller deposits their batch of tokens into the exchange’s wallet. The exchange then swaps the balance of crypto and INR for the trade to occur. For this process, the exchange needs to maintain a bank account in India.
“After 2020, all exchanges reverted to the normal mode. WazirX continued to operate both P2P and normal modes. Noticing this loophole, all major international exchanges with Indian customers launched a P2P transaction system,” Vijay noted.
What Makes this Development Interesting?
India has mandated that all crypto-related firms register with the Financial Intelligence Unit (FIU). ByBit’s status in this regard remains unclear. In March, Apple removed the ByBit app from its App Store in India. However, the ByBit app is still available for download on Google’s Play Store. Additionally, ByBit’s web platform is accessible for some users in India, while it is not loading for others.
Gadgets360 has contacted ByBit for clarification on its legal status for operating in India. Their response is still awaited.
Where does the eRupee CBDC Stand for Now
India’s CBDC is currently undergoing advanced trials involving multiple banks, retail merchants, and wholesale traders. The RBI views the eRupee as a means to enhance India’s cross-border transactions and elevate the INR to an international level.
In June, the eRupee saw a decline in activity after banks reduced their promotional efforts.
According to the RBI’s latest data, as of June 2024, 5 million users and 420,000 merchants were participating in the CBDC retail pilot.
