Ethereum, popularly traded as ETH or Ξ, is a decentralised, open-source blockchain cryptocurrency with smart contract functionality. Following Bitcoin, it is the second-largest cryptocurrency by market capitalisation. Ethereum is the most active blocking chain. Russian developer Vitalik Buterin along with Gavin Wood programmed this cryptocurrency in 2013.
Ethereum is a decentralised finance (DeFi) application that provides a wide range of financial services without the need for regular financial intermediaries such as banks or stock exchanges and allows cryptocurrency users to enter into contracts or hold their own loans.
Ethereum is home to digital money, global payments, and application - the crypto community has built a booming digital economy.
Can Indian MSMEs Get Relief with Cryptocurrencies like Ethereum and Bitcoin?
With the high tide of blockchain and cryptocurrency, it is time for India to partner with world-renowned cryptocurrencies to fund SMEs and help businesses grow. The government can do this by channelling legitimate investors through Indian and international exchanges, which will help eliminate a $500.5 million funding gap for SMEs.
According to experts, major crypto applications and tokens in India can be credited to MSMEs for financial backing. The difficulty of lack of credit for India’s vast strip of micro, small and medium enterprises (MSMEs) has appeared to be unending so far. For the uninitiated, the credit gap for MSMEs in India is estimated to be a whopping $380 billion, as per the World Bank.
Today, the critical question is – to back businesses of all sizes in India, could there be an investor segment with an essentially volatile investment appetite mixed with a global outlook to support vast local and small business assets? Experts believe that cryptocurrency investors could be the answer to this question.
Crypto is Bringing Fundamental Change for All, including SMEs
Changes in blockchain technology and regulations have caused a fundamental shift between private and public equities. By adding a solid community of private investors and preparing to support the private sector tomorrow, India needs to democratise private sector investment and finance the enterprise of Indian SMEs.
With the rise of cryptocurrency, banks will ultimately have to use blockchain technology to facilitate crypto investments. The whole contemporary banking structure is an obstacle to the financial absorption of cryptocurrencies in the country. India needs more innovative systems to ensure faster penetration, better investment and better performance across the sector.
Cryptocurrencies in India need Regulation, Not Bans
For the Indian cryptocurrency industry to reach its full potential, the regulatory framework needs to be clarified. To harness the power of crypto in India, tax authorities must work with governments on crucial issues such as definition and ownership, compliance, certification and reporting and taxation.
The crypto giants like Ethereum, Bitcoin, Dogecoin, Polygon Matic, etc., today are bigger than the numerous tech giants in India. As soon as India adopts the technology with open arms, stringent policy and regulations, all these new channels will add to the economy. In addition, by increasing information on foreign investment, crypto can meet the financial needs of SMEs.