A new avatar: Making a case for crypto-currencies to fill SME financing gap

Studies point out that the 40 million-odd SMEs in India, with limited access to formal credit, face a financing gap of $250-500 billion

Despite regulatory risks, the case for crypto currencies might be growing stronger. For one, Tiger Global led a massive round in local exchange CoinSwitch, which many see as a backing of the long-term potential and viability of crypto-businesses in India. Secondly, new use-cases are coming to the fore, with the latest one being crypto-currency as a means and vehicle to finance small and medium enterprises (SME).

Many reports and studies pointed out that the 40 million-odd SMEs in India, with limited access to formal credit, face a financing gap of $250-500 billion. The government has tried to bring them into