KOZHIKODE: Be it the Internet of Things or cloud computing, Malayalees are among the first to embrace technology in any sphere. Now, mention the innovative cryptocurrency Bitcoin, and many startups and IT companies in the state will say they have been using it as their most-favoured payment option for a year or more.
IT firms in Kerala prefer Bitcoin because it helps them receive funds from clients within minutes compared to conventional banking channels, which may take three-four weeks.
Though the Reserve Bank of India (RBI) has warned that Bitcoin and other cryptocurrencies are risky, IT companies, even startups, are ready to take it as their overseas clients are more into Bitcoin for payments.
On December 24, the RBI had stated “payments by virtual currencies, such as Bitcoins, take place on a peer-to-peer basis without an authorised central agency which regulates such payments.
It has not given any licence/authorisation to any entity/company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader dealing with virtual currencies will be doing so at their own risk.”
Kappian Inc CEO Arun Haridas said his company based at UL CyberPark here has been accepting Bitcoin from late 2016. “Nearly three-four per cent of our revenue receipts in the last one year are in Bitcoins. More clients want to make payment in Bitcoins and it’s expected to grow in the coming months,” said Haridas.
“We had a big project with an overseas client. When it tried to remit through conventional banking channel, it failed due to technical reasons. As it led to a delay in fund transfer, one of my friends suggested Bitcoin. We opened a wallet and received payment quickly,” he added. The company has a communication platform -- My Guardian Angel -- for institutions and accepts Bitcoins as service fee.
“Our client base is mainly in USA and Canada, and they prefer payment through Bitcoin,” he said, adding many non-resident Keralites too opt for it. “Overseas clients mostly ask companies to accept remittance through Bitcoin,” said Abdul Hasib, blockchain developer of Piyars Technologies, a software development startup at the UL CyberPark incubation centre. Some companies in Singapore and Japan are insisting on it.
Hasib said his company had received nearly `4 lakh through three Bitcoin transactions in the past three months. “The companies convert the received Bitcoins in their wallets to Indian rupees and US dollars through Bitcoin exchanges,” said Hasib. He said Bitcoin exchange Zebpay, an Indian startup, has been asking companies to link PAN card and Aadhaar while opening wallets.
A senior officer of the State Bank of India said Bitcoin was neither legally approved nor banned in the country. “The RBI is not entertaining cryptocurrency transactions. However, when companies transfer their money to bank account after exchanging Bitcoins into Indian currency, the banks are not currently verifying the source of revenue,” he added.
Hasib said the company was properly accounting the flow of money, be it Bitcoin or normal currency. “Cryptocurrencies and blockchain are the future. We can’t stay away from it. We’ve to take the risk,” he said.