As a large number of Indian High Networth Individuals and their representatives went around Swiss ski resort town of Davos for attending the annual WEF summit last week, they also got several pitches on the margins for two new ‘safe and promising havens’ — cryptocurrencies and cash vaults.
Cash vaults, which are huge in size unlike the typical bank lockers in India and can contain not just cash but also gold, data, paintings and sculptures, are big business in Switzerland and are not just limited to banks, with several standalone entities offering these services.
Some vaults are actually buried deep under the snow with several strong layers of security, multiple executives associated with this business said.
What they want is now to expand their operations to India by offering their Swiss vaults to HNIs from India and also by roping in ‘strategic partners’ to set up similar vaults there, some of the Indians approached by them said.
The Davos meet also saw a number of entities and individuals associated with several cryptocurrencies present in the city — some were registered for the meet, but most of them remained outside the official programmes to pitch these ‘safe’ and new-age products.
Again, several Indians were approached not just for investing in these currencies, but to join as partners. Those pitching the two ‘safe havens’ included several non-resident Indians, as also those from Russia, Germany and China.
All of those making the pitch and receiving such pitches refused to be named, saying they do not want to land in regulatory problems as there are no rules as yet either for cryptocurrencies like bitcoins or cash vaults in India.
However, some top global leaders spoke openly about the risks associated with cryptocurrencies during the official sessions of the World Economic Forum.
IMF Chief Christine Lagarde said that the multilateral financial institution was already looking into the issues relating to cryptocurrencies to analyse potential risks arising out of this new asset class due to the anonymity attached to it and the possible money laundering risks, while the US Treasury Secretary Steven Mnuchin asserted that these currencies would not be allowed at all for any illicit trades.
Lagarde, however, said that the new technologies that have led to creation of cryptocurrencies need to be analysed properly and felt that innovative technologies can help improve the financial inclusion scenario in the world.