Next Stop for Bitcoin: India
While Bitcoin has been legalized in Japan as an official currency, it has found some opposition in other places. Could that soon be changing?
Welcome to India!
The land of over 1.3 Billion people.
Bitcoin has seen a massive surge in demand in India, however, it hasn't been recognized as an official currency just yet. Instead it is classified as an asset, similar to gold.
However, as more and more countries are jumping on board the Bitcoin bandwagon, the Indian Government is being forced to re-examine how they look at Bitcoin.
Will that change anything?
Perhaps.
In April of this year a committee was formed to examine the existing frameworks around Bitcoin and other virtual currencies both locally and worldwide.
The goal of this committee will be to examine and monitor the current virtual currency statuses in other countries and also discuss how they can combat money laundering and make sure the consumers of these products are protected.
The expectation is that the committee will make it's recommendations to the government by the end of July.
To further expand on how serious India's government is taking Bitcoin (and virtual currencies)...
Along with creating that committee, they also recently opened up the topic for public opinion in order to get some added input.
The public chimed in with more than 3,800 comments on the matter.
According to reports from the area, it is looking highly unlikely that there will be an outright ban on Bitcoin as was once a possibility. That seems to be sounding an awful lot like the stance Russia once took as well.
At one time Russia was contemplating outlawing Bitcoin and jailing anyone trading it. Now, they are talking about legalizing it as an official currency.
The Times, They Are A-Changin!
<div style="position:relative;height:0;padding-bottom:56.25%"><iframe src="
(I love to squeeze this song in any time I can)
The co-founder of India's leading Bitcoin exchange (Zebpay), Sandeep Goenka had this to say regarding Bitcoin legalization:
"We are cautious but optimistic that the government recognizes the need to regulate bitcoins and virtual currencies. We recognize that it's a challenging task for any government. We look forward to engaging with the task force setup to give our recommendations."
To date, Bitcoin hasn't received much acceptance from Indian officials thus far. The Reserve Bank of India had this to say back in 2013 regarding virtual currencies:
"The use of online and mobile technologies are driving the proliferation of virtual banks, virtual currencies, and provision of banking and payment services by unlicensed entities. While leveraging on technology has resulted in many benefits, especially in extending the reach of financial services, these developments pose challenges in the form of regulatory, legal, and operational risks."
Not much has changed since that time, except many more people are now transacting and trading them.
Which is basically forcing the government to re-examine it's previous stance.
Currently, the major virtual currency exchanges Zebpay, Unocoin, and Coinsecure operate by following the current Know-Your-Customer and Anti-Money Laundering guidelines. Going forward, it will be very important to make sure that bitcoin transactions are non-cash transactions.
Meaning that every transaction from bitcoin to local currency is done via bank transfers or done using some other transparent mechanism.
This will be an important feature in combating money laundering.
Conclusion.
While it looks like India might still be a ways off on outright legalizing Bitcoin as an official currency, it certainly is moving in the right direction.
It is very encouraging to see countries like India and Russia completely change their stance on Bitcoin and virtual currencies that they held just a couple years prior.
Looking forward to see many more following in their footsteps.
Stay informed my friends!
Sources:
https://en.wikipedia.org/wiki/India
http://www.investopedia.com/news/bitcoin-close-being-monitored-maybe-even-legal-india/
Image Sources:
http://www.getwalnut.com/blog/wannacry-attack-bitcoin-india
Follow me: @jrcornel
Governments started to accept cryptocurrency one way or another. For example, Russia removed ban on bitcoin. Japan officially accepted bitcoin. These are signs that cryptocurrencies are going to play a vital role for a country's economy in near future.
Banks already working to adopt blockchain technology. In fact financial companies like paypal are working on it to find a secure and robust transaction processing solution for their internal use.
This post received a 2.1% upvote from @randowhale thanks to @codebreaker! For more information, click here!
I don't know if they are just trying to keep up with recent times or they're just looking into a way of monetizing on it, like most governments do .
Anyhow , with India's population it's hard not to have an impact
This post received a 0.9% upvote from @randowhale thanks to @kingmotan! For more information, click here!
When a country can't beat it, then they join it.....(This is what we are seeing in India and Russia). With each country starting to regulate, or at least acknowledge bitcoins existence, the price will drastically start compounding upward :)
I always feel sad when I see bitcoin/ altcoin become legal or properly adopted in other countries. As it makes me feel than Hong Kong is really doing soooo bad on it. Come one, to be a financial center, you have to make yourself updated and catch the world trend!
While Bitcoin has been paralysed by indecision, Ethereum has raced ahead with technology that not only does everything Bitcoin can do faster, in higher volume, and at lower cost — it does a lot more besides.
Bitcoin’s dominance is slipping because its utility is limited and weakening versus other more recently developed, less politicized cryptocurrencies. Financial markets don’t like uncertainty, and Bitcoin is gearing up for a messy divorce. Ethereum was never intended as a competitor to Bitcoin, it’s something very different.
India will be big for bitcoin. Then russia next!
When you really sit down and see the people behind Bitcoin things start to become clear (e.g., Max Keiser wife). This is a stepping stone to what will be the new financial system, but it wont be with Bitcoin because its designed to fail. Besides that their tech isnt up to date with other new platforms such as ETH/Litecoin/etc....
I do think that Bitcoin will go through the roof and for that I am an investor, but if youve been involved in Bitcoin since 2011 you will find that it has rasied and dropped huge amounts over its span.
We oldies are used to these radical moves because we hang on to it and wait patiently. It always comes back and stronger. How many times will this happen until they break the entire system and merger all Crypto with one of their own...
Domi
I think the Bitcoin price would becomes more stable over time as more people invest and price goes higher. With more Bitcoin in peoples hands, it would be less affected by a few large transactions. And as price increase , people would have less incentive to rock the BTC boat.
That is why Bitcoin would be here for a long time. The gold of the new financial system. The other alt coins like ETH/Litecoin could be used for payments or money transfers which they are better suited while Bitcoin would just become a storage of value protecting money from inflation
I agree. If Bitcoin goes to 1million then we can see how it could be used as an inflation regulator. I do think this will happen, but it will take several more large swings in the meantime. Expect one soon. If not, then it goes to the moon.
Domi
Yes, I agree. That is what we counting on when we invest in crytocurrency. Those large swing will make us rich :)
they are saying they have not priced in the acceptance of the Indian government of bitcoin
I'd say unless the Indian government demonetize their money again
greater impact would be to those who are sending money back to India
India legalizing this currency would be a huge leap in progress. Here is to the hopes that it happens. New follower here, look forward to your content.
Thanks
@abn
@jrcornel
nice info
i just learnt from you that japan has accepted btc...
great news coming from india and with such , it seems btc will rise in value...good info
Hii..
I am an Indian and I myself have witnessed the revolution of cryptocurrency and its increasing demand in the Indian market.
I really wish the Govt. release some guidelines asap. I anticipate the price a lot higher if bitcoin is legalized in India.