WazirX announced the launch of P2P transactions at its platform. In the P2P transactions, WazirX will escrow the digital assets, facilitating direct account transfers between users willing to buy or sell crypto. In the light of the recent RBI’s verdict on bank transfers and crypto exchanges in India, the P2P model presents the safest and most legal ways for Indians to cash in or out of their digital assets.
In addition to commencing the P2P model, WazirX also announced the launch of Tether, in order to simplify the P2P transactions. Tether converts cash into digital currency to mirror the price of national currencies like the USD, the Euro, and the Yen. Tether (USDT) is a stable coin — cryptocurrency holding stable value — and is 100% backed by the USD held in their reserves in a 1:1 ratio. Thus, 1 USDT (Tether) is always equivalent to $1 USD.
Commenting on the launch of Tether, Nischal Shetty, Co-Founder and CEO of WazirX said, “While building WazirX P2P, we realized that since crypto price fluctuations are beyond our control, we needed to bring in a stable coin. Thanks to the amazing crypto ecosystem, there are plenty of stable coin options available! Since we wanted to add the stable coin with the highest liquidity in the global market, we’ve decided to go with Tether (USDT) to use in WazirX P2P.”
Tether (USDT) deposits are live on WazirX platform and are going to bring stability in the P2P transactions. Along with P2P, WazirX has also launched its USDT market, thus allowing users to easily convert their cryptos to USDT. Since WazirX has ensured enough liquidity in the market, it is set to offer its users with the best prices currently available on cashing in or out of the cryptos. Whenever a user would like to sell any crypto, they would simply have to convert it to USDT (Tether) and then, simply cash out by using WazirX P2P. Same holds true for cashing in. Price fluctuations will not bother users buying (cashing in) cryptos through WazirX P2P as the value of USDT is pegged to the US dollar and it’s very stable in day to day value.
Nischal Shetty further explains the new transactions going forward, as follows, “For instance, if you want to sell your BTC worth $5000 which is equivalent to approximately INR 3.4 Lakhs INR, here’s what to do: Sell your crypto (BTC, in this case) for 5000 USDT. Your trades will execute instantly because our USDT market has great liquidity! Now since USDT is a stable coin, its value will not fluctuate like volatile cryptos. After that, put your 5000 USDT for sale on WazirX P2P and when someone comes to buy 5000 USDT on WazirX P2P, they will transfer INR 3.4 Lakhs to your bank account.”
Thus, by converting crypto to USDT first, it is ensured that crypto traders will never have to worry about price fluctuations anymore. Furthermore, WazirX acts as an escrow, where the platform will hold the USDT before buyers transfer the money to the one selling crypto. When the seller confirms that they have received the money, WazirX will transfer this locked USDT to your WazirX wallet. Since WazirX follows KYC and AML guidelines, users can be rest assured of the P2P trade happening at the platform.