The peer-to-peer platform is integrated as a crypto buyer and seller exit to facilitate transactions and avoid potential regulatory issues with traditional banks. Piyush Shulka MoneyControl ReportEmphasizes examples of platforms WazirX and stablecoin Tether:
“Cryptocurrency exchange and trading platform WazirX has a peer-to-peer platform named WazirXP2P that allows users to place orders to buy or sell cryptocurrencies.
The buyer first orders the purchase of Tether (USDT). When matched with the seller, the buyer pays the seller cash directly. After the seller confirms receipt of the payment, WazirX releases the escrowed tether to the buyer. If the client wants to sell cryptocurrencies, follow a similar process.
With this setting, the exchange only facilitates trading and does not accept payments from customers or transfer funds to the customer’s account. All payments are made directly between the buyer and seller organized by the exchange. The reason is that most banks do not allow customers access to crypto transactions … “
This process may be even more necessary in countries like India, where the Reserve Bank of India’s regulatory reforms have restricted purchases and prevented banks from entering the crypto market.
“Bankers said the biggest challenge when dealing with cryptocurrencies was the lack of clear asset regulation. The RBI brings to the use of cryptocurrencies and their financial and economic stability. We have repeatedly called attention to threats. Central banks have cited multiple risk factors, including high volatility, lack of underlying assets, and the speculative nature of warning investors about the use of cryptocurrencies. . “
P2P is limited because the market essentially requires matching between stablecoin buyers and sellers, and it takes time in developing markets.
Overview by Jordan HirschfieldMercator Advisory Group Prepaid Advisory Services Director