Leading digital payments provider Paytm would explore Bitcoin offerings if India’s government eased regulatory uncertainties around cryptocurrency use.
Now, Paytm India’s second most valuable internet firm with an estimated market value of $16 billion is exploring Bitcoin offerings as a payment option if it becomes “fully legal” in the country, according to Paytm’s Chief Financial Officer, Madhur Deora.
In an interview with Bloomberg TV, Deora stated:
“Bitcoin is still in a regulatory grey area if not a regulatory ban in India <..> At the moment, Paytm does not do Bitcoin. If it were ever to become fully legal in the country, then clearly there could be offerings we could launch.”
The Reserve Bank of India had previously prohibited the use of cryptocurrencies in the country, but the Supreme Court overturned the ruling in March 2020. Besides that, the government has indicated that cryptocurrencies would be regulated and that it is collaborating with a number of different groups.
Despite the fact that the government has contemplated enacting crypto-related laws, the Reserve Bank of India has maintained a scathing attitude against the technology and has advocated for its prohibition.
Paytm’s IPO in November
Notably, the comments from Deora come as Paytm prepares for public subscriptions to its 183 billion-rupee ($2.4 billion) initial public offering (IPO), having already sold almost half of the company to anchor investors in a private placement.
Likewise, more than 100 institutions, including the Singapore government, have received shares worth 82.35 billion rupees ($1.11 billion) from Ant Group-backed fintech business Paytm prior to what is believed to be India’s biggest stock market debut.
In fact, IPO is said to be the largest in the history of Indian capital markets and is set to go live between November 8 and 10, just after Diwali, with the price range for the first public offering kept at Rs 2,080-Rs 2,150 for simplicity.
After the firm raised a billion dollars in November 2019 from T Rowe Price, Discovery Capital, and D1 Capital, the firm was last valued at $16 billion; however, the company’s value is estimated to increase to $20 billion as a result of the upcoming IPO.
Indians seek out investment opportunities
It’s worth mentioning that due to the growing adoption of cryptocurrencies, Indian millennials are rapidly turning away from conventional investing methods such as stock trading and toward digital assets instead.
In particular, Dogecoin (DOGE) and Shiba Inu (SHIB) have emerged as the most popular digital assets on India’s cryptocurrency exchanges, with the highest trading volume.
Nevertheless, despite crypto adoption growing, India’s demand for gold exchange-traded funds (ETFs) has increased dramatically, drawing in $60 million in September.