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!
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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.
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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
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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
@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
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
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.
Whatever their intentions, it is a step forward for bitcoin and that is what matters.
Government should not be in the business of money.
Awesome post! Interesting to see how even the countries that were against bitcoin the most are now totally changing their mind. That's also one of the reasons that i think the latest rise isn't a bubble but actually is a real rise in value! Keep up the good work with such nice posts!
Despite the negative initial stances, the true value of Bitcoin is recognized with time. They change their stance after seeing how useful it is. More and more people will do this.
Indian here...At present the cost of a bitcoin is significantly higher on Indian exchanges than in international markets. I personally use zebpay (They were the quickest to complete KYC procedure). EthexIndia has come up with an ethereum trading platform recently.
Otherwise it is a bit difficult to get your hands on bitcoin/ altcoins in India. As the exchanges increases and supply increases, prices should match international ones.
Essentially every company an service has come up with their own wallet now. E.g. Makemytrip, Ibibo, airtel and even axis bank... I think all these will soon make way for the real cryptos!
Once India gets in the game, the boom is inevitable!!! Looking forward to that time, Till then hold your cryptos! :D
Cheers!
Follow @drkewalmd
Is there a lot of other countries bitcoin is legalized like an official currency ?
Because it's a really good thing.
Btw : I love your work
It can be a bit difficult for first time Indian investors or traders in alt-coins. I have published this India specific post for such folks - https://steemit.com/bitcoin/@akshayraje/how-do-i-buy-sell-bitcoins-ethereum-tokens-in-india
Imagine the size of the blockchain once 500 million people start to send micro-transactions daily.
Great news indeed. India is one of those countries that need bitcoin or any other cryptocurrencies to be their official currencies. With 1.3 Billion people, the country will be more connected and easier to do business outside its borders, thus providing for a great economic reform.
Great post!! Keep it up :)
By the way, I'm following you now
Cheers
Asian countries are accepting it, yet old and crusty US politicians are proposing bills that will criminalize holding it.
We should consider starting a website/guide geared towards those in Law Enforcement, on the potential digital currencies have on making their lives better also. After all they will be the ones enforcing these backwards thinking laws by these old crusty men in Washington who really don't even care about us, and therefore don't care about them
I just hope government doesn't play it's legality card and ban cryptos....if India accepts bitcoin I think it will be a big boost for overall crypto market since many emerging economies will come under pressure to follow India's suit.
@jrcornel it is also essential to understand that there are research reports done in India on the digital currencies which may also need your attention here http://economictimes.indiatimes.com/news/economy/finance/digital-currency-to-abet-money-laundering-report/articleshow/21212640.cms
Holy smokes! hold on to your bitcoins everyone!!!
I think this is just a start. Watch how when countries adapt there will be a domino effect. This will bring media attention which drives hype. With hype goes price $$$
If Bitcoin, digital currency for that matter, gets legalized in India then it will surely have a huge impact on crypto currency market. India has many potential users and investors who will jump instantly if Bitcoin gets legalized status. It is yet to be seen that what conclusions that committee comes up with and what type of regulations govt would bring in.
The amount of wealth it'll generate for India will be unprecedented and politicians know that
Yeah. That's right.
Good post...
Bitcoin is taking over the world.. Is it the beginning of the end for the dollar
Soothing news :)
This is yet more good news for btc. I can't wait till the bip148 is over :)
Indian's loves investment whole world know Indian love for gold cryptocurrency
it can work as substitute for gold. Hope Indian government legalize it in without shitty rule. Hoping for the best.
The one thing governments don't want to lose is their power. Bitcoin threatens that although they know they can't stop it outright as if they ban it then they are heavily disadvantaged against the rest of the world.
I keep reading this , here is the problem governments every where are in the process of regulating crypto currency. The crypto currency that a nation ends up adopting will the the one they can control.
bitcoin to the moon thanks for the info man, upvoted
india's largest banks have signed on to Ripple FYI...
A major reason to legalize it, besides promoting technology, is to tax on bitcoins. Once legalized governments can impose VAT on it which will bring millions to governments (and thus cost us millions)
It's either they accept cryptocurrency or they disadvantage themselves as a result. Cryptocurrency is certainly gaining ground and its usefulness is proven day by day, hence the increased popularity and usage. I think it's only a matter of time before governments accept it, though the timing will be different for all countries, some doing it soon and some later.
Traditionally Indians buy Gold as wealth storage. If they diversify a share of it to Bitcoin this would bring hundreds of millions new investors to crypto. That could bring us to a price of 10k.
But what about precious metals? Is there a place for gold and silver in the future? What about a gold backed BTC. Thats something to write home about, isn´t. I think the cryptocurrienses are forerunners breaking the way for gold and silver.
I believe Australia joins the party in July/August? I wonder these days, whether 'they' see it as a way out, as the current financial system is no longer functioning, and they have no idea what to do, beside keep printing. Bitcoin and similar could be their saviour.
Great news! Cannot wait for bitcoin to be Known Worldwide.
Most interesting about this post is that it is old news. A different #STEEMIT user (@kingscrown) posted the same news 2 days ago!
https://steemit.com/bitcoin/@kingscrown/bitcoin-officialy-legal-in-india
Why is this interesting? Because these stories are regurgitated and have STILL accumulated a combined $2K+ in payouts...
Actually they are talking about two different things. This post is talking about possibly legalizing bitcoin as an official currency... the other is not.
I agree your's dives a little deeper but the title doesn't give it justice. The title could read:
"After Legalizing Bitcoin, India Moves Toward Making it an Official #Currency"Also, you probably could have dug a little deeper as to why there is consideration for legalization as a currency.
For instance, for the past 5 years, the #Rupee has lost tremendous value due to inflation and a stronger dollar, creating an even bigger gap between the rich and middle class/poor. Bitcoin as a currency will eliminate currency devaluation and give the working class more opportunities to thrive.
Just some constructive #feedback :)
Haha thanks. Length begins to be an issue at times. However, I smell the makings of a potential post for you... ;)
I don't have the followers to make that type of post yet.
BTW, I'm also AZ. Represent!
There are a few of us on here! Where in AZ?
India has joined the alliance folks. Not just with this action but if you don't see this a giant blow to the central banks...you must be crazy.
hey guys check this out and follow me plz https://steemit.com/breakingnews/@egzon/btc-breakout-alert
I hope India fixes their horribly corrupt government. I hope there's a day when that's not a common thing to say about government. Crypto will only help.
I wrote an article on Incredible India. About my visit to India (Calcutta and Darjeeling). I'm from Bangladesh, and I'll be glad if you read my article.
Link: https://steemit.com/travel/@shadmannnn/incredible-india-travel-guide-or-dhaka-or-calcutta-or-darjeeling
Thank you. :)
I believe the one of the importance of Bitcoin to India is thru the remittances that flow from many Indian expats working abroad. Money can now be sent safely and without so many fees. This would bypass the banks and remittances agencies that charge a lot to handle sending of money to India.
this is just the begining.gif)
I am really tempted to move back to Japan at this point. I lived there for awhile and I can see exactly why they want to move into crypto. They are still a mostly cash society and don't really like using credit cards much. It was a hassle to use a credit card there where I lived (out in the "inaka"). If they can get people in the backwoods and everywhere into crypto, Japan will be way ahead of the curve. The US on the other hand... let's just say I'm getting really tired of this country at this point.