CryptoCurrencies have been really big in the international market. But how long until India utilizes this currency for its major economic sectorsShruti Singla
India has been facing a massive change in its policies in the last few quarters. With the election of the Modi government, a lot of new regulations have been implemented. Real estate has been the sector that is impacted immensely by these amendments. The Indian realty market was terribly hit by demonetization and led to the slowdown in the property sales. Moreover, several investors started investing via Bitcoins.
Circa 2014 – India was witness to a whole lot of noise around revisions around several social and economic aspects. India has been facing a massive change in its policies in the last few quarters. The changes reflected after the election of the Modi government have made quite an impact on several sectors. Real Estate, the big sleeping giant has been one of them. GST, Demonetization and RERA have had quite a tremendous impact on real estate. And while, brokers and realtors are looking to run their business smoothly, tech changes are still to make an impact in the market.
One of those is CryptoCurrency. Bitcoin, Ethereum and NEO have made quite some ruffles in different sectors internationally. India, on the other hand is still rather nascent when it comes to the exchange of cryptocurrencies for the exchange of real commodities.
As crypto-coins operate independent of a central bank, a Hyderabad-based realtor, Modi Builders sees a a certain risk attached in transactions via the currency. It is considered to be a shady mode of transaction by few of the investors and developers of repute around the world. That sentiment is reflected by their contemporaries in India. That said, the firm unequivocally refutes a foreseeable future of cryptocurrency in the Indian real estate sector.
Bitcoins have been receiving appreciation in the recent times, but have also stirred controversies in the real estate. This happened as handful of projects in the US and Dubai have received investments through Bitcoins. Furthermore, many Indian dealers have started transacting in cryptocurrencies since the slide in the property sales. Modi Builders has a different call on the issue. With many years of experience in the building industry, they instead appreciate transactions that occur in the currency that RBI and the government recognize.They find cryptocurrencies to be a risky business.
Offering quality to their customers, Modi Builders has built a reputation on the bricks of honesty. It is a leading construction firm inthe twin cities of Hyderabad and Secunderabad, working strictly on a code of conduct. Naturally, its CEOs believe in working within the legal limits.
Its review provides various reasonsfor its deniable approach towards cryptocurrencies. Bitcoins promote opacity instead of creating a transparent environment in the market. Understanding the situation of the Indian real estate, the Hyderabad-based realty company wants a clean and manipulation-free system. This is being done through the implementation of several policies like Real Estate Regulatory Act (RERA), Goods and Services Tax (GST), and Benami Property Bill by the government.
Engaged in the corporate-social activities, the realtors feel that the transactions in cryptocurrency might prove to be a hindrance in the process and initiatives of the government. They are not considering Bitcoins as viable as the cash flow in the sector cannot be accurately tracked, thanks to Bitcoin’s untraceable properties.
Experts from this construction company are certain that cryptocurrency transactions can create massive challenges and provide no significant benefits. The way realty in India is bought and sold will not make Bitcoin transactions beneficial to the seller or the buyer. It would rather create challenges in monetary form calculations accepted by stakeholders.
These realtors presume that the cryptocurrencies can become difficult to swallow and harder to digest in the trade, exchange and sale of properties. They have constructed various residential and commercial projects, and are able to judge the consequences of transactions through cryptocurrencies in real estate. The Indian finance sector will probably find it difficult to accept the transactions in virtual denominations that cannot be fully regulated or traced. Moreover, there is a high risk involved in investing for both the buyers and developers. The real assets of the investors or the end-users should be legal in every way, so as to not cause any ownership or resale problems.
Among the realtors who have been successful in every venture from the time of establishment, Modi Builders strongly deny the use of cryptocurrencies in the Indian real estate in the near future for the benefit of their investors.