Armstrong explains why they suspended UPI payments in India

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Coinbase CEO Brian Armstrong says the exchange has come under informal pressure from the RBI to withdraw its Unified Payments Interface (UPI) option in India Armstrong still maintains a bullish position, despite Coinbase’s 430 net loss of 430 in the first quarter Last month, Coinbase launched UPI payments for Indian users but before the option could even go live, it was withdrawn, without the platform giving users any explanation. UPI is a widely used payment infrastructure built by a network of banks. The decision to withdraw the offer was preceded by a warning from the National Payments Corporation. of India (NPCI), which manages the UPI. The organization denied being aware of “any cryptocurrency exchange” using UPI payments. Informal pressure from the RBI Speaking of UPI, the CEO of Coinbase Brian Armstrong offered an explanation during Tuesday’s earnings call, saying the exchange has received “informal pressure from the Reserve Bank of India, which is a kind of equivalent body of the Treasury. “. Armstrong disclosed that while cryptocurrencies are not illegal in India, there is resistance from the country’s central bank. This, albeit slight, pressure made it difficult to set up payments through UPI. He added that Coinbase has agreed to work with the RBI to find a solution that allows them to establish additional payment options. A loss of 430 million, but Armstrong is still bullish However, on Tuesday, Coinbase released its quarterly report, in which it revealed a first-quarter net loss of 430 millions of dollars which led it to drop to 1, 17 billions of dollars in revenue . This represented a decrease of approximately 27% from the first quarter numbers 2021. First quarter revenue was also less than half of the 2.5 billion recorded in last year’s fourth quarter. Additionally, the number of monthly active users has reached 11, 4 million, down by 19% compared to the numbers of the previous quarter. This adds to the current bearish environment, but Coinbase’s CEO insists he remains unperturbed. Justifying his belief during earnings posting, Armstrong told investors that generally bearish periods are often very productive for Coinbase, which is why it has never been so bullish on the company. “There are so many customers who make a journey on their way to us that we need to have all operators at work just to keep everything running, so periods of inactivity are sometimes a kind of welcome change, in the sense that we can focus on building the next level of innovation that will benefit us in the next cycle “. Coinbase also pointed to a prospectus shared by the exchange last year, insisting on the company’s ambition to continue with the adoption of cryptocurrencies even with the market volatility.