Bitcoin Forum

Rs 500 and 1000 currency demonetised

In a major step to check black money, the Indian government on Tuesday discontinued Rs 500 and 1000 currency notes. The announcement in this regard was made by Prime Minister Narendra Modi during his address to the nation. “From Midnight Nov 8, 2016 today, Rs500 and Rs1000 notes are no longer legal tender,” said Modi.
The prime minister said that corruption and black money is something the government has fought for immediately after assuming office.

For Bitcoin investors have no worry...Because Bitcoin is most safe and secure digital currency in universe.

For people who are related to online banking/crypto world..this news is of no much big worry..Buy  normal people who have day to day cash transaction are highly affected

Would suck to be out on a boat unable to get anywhere near a bank before the deadline,seems like a short window.
Will the banks except these bills up till then or will it become a issue in its self?
The demonizing of higher currency bills has little to do with the black market and more to do with citizens stashing money away and not using the banks. Think the drive towards getting everyone using a bank globally is on and I know for sure India is pushing this at full steam. Once they have us locked in prepare for negative interest rates,can just smell this coming down the pipes,also other reason the idea of crypto currency is appealing with government/bank controls built in.

its great what our pm did but this sudden action was little bit too much anyway its better to give medicin insted of fiting the proples this action had stopped the production of fake notes and pushed many people towards banks

I don't think it will affect normal people who transactions are low and unless they are not dealing with black money, the people who will be mostly affected will be politicians themselves who have high volume of physical cash with them as most of them are involved in illegal activities.

This is the first time in India when the poor are happy and rich are sad.Many black money makers will be caught red handed soon and the price of goods and stuffs will at least go down in coming days but due to this new rule the banks are busy 24/7.

As for the bitcoin earners in India they have no worry though.

I think most crime are done with cash, and this will help to reduce crime too. The petty crimes will still continue, but the high profile crimes

were larger notes are used, would decline. Just image what the bank robbers with the hidden stash must be going through, before that due

date, they will have to get rid of big amounts of money in a legal way.  ::) .... I just hope these crimes will not shift to Bitcoin.  >:(

It's a good step in the right direction, and that's good news for those who have Bitcoin in India, but the effects won't take place for a little while and it'll be imposed on December 31st if I read some other things correctly.

This is kinda big, and it might be good for their economy, but we'll have to see how it plays out.

it is a good step and people who are having huge amount of illegal currency are already panicking as someone found a stash of 500 and 1000 rupee currency in dumped in maharastra ,so this is really effective and i am sure people would venture other ways to hide their wealth and bitcoin will catch up in india

That's fact and still running from a long time ago.
For bitcoin, that's pretty impossible. bank get a disaster  ::) ::).

Tricks like this was done before by many goverments, u can never know when time will come for you. Secure yourself by bitcoin investment. Better than gold, safer than any FIAT.

This is when you realize the meaning of 'fiat' in fiat currency.
All it takes is an executive decision, for it to become worthless.

By what I've read it's already in affect. So there wouldn't be any time to dump the bigger notes somewhere legal. If people have them now I guess they're just worthless? There must have been so many fakes in order to justify this. I would have to hope so anyways. Idk, fiat is just annoying ;) come over to the bright side.

India's move is a perfect example for problems associated with centralized things. I do not see any greatness in this move, because there will not be any guarantee for no more black economy in longer haul.

It is a good move to get rid of black money immediately, but as you said people will build/save their new black economy with new currency notes. In a vast country, it will not be possible to monitor/control every politician/business people. Still, their move might give positive impacts in their national economic growth at least in short term.

I heard they are providing a limited amount of 2000RS notes. If the Bank finds more notes widespread than the surplus provided, further action will be taken.

Ever since Rs. 500 and Rs.1000 notes have been made illegal tenders, there have been very very long queues (queues reaching towards main roads) on almost every bank's branch and people are waiting in line to deposit their old currency notes to either get multiples of the same denomination Rs.100 notes or Rs 50's and rarely do few people get the new Rs 500 and Rs 2000 notes. It's been a menace for the poor who are un-banked cause now they have to wait in the same queue and educate themselves about having a bank account setup to exchange their old funds. Most of them travel long distances to reach urban banks cause rural banks are overcrowded and have lesser funds. I'm sure in the long run this has helped curb fake currency circulation, but I'm unsure if it has really helped catch hold of all those unaccounted black money cause most were traded by Hawala traders overnight. I'm glad I'd never have to face these issues with Bitcoin (unless ofcourse there's a hard fork situation like Ethereum faced)

But what happened to the people who had their saving in Rs500 and Rs1000 notes? Sounds terrible to me, but I hope they had the chance to exchange their notes. We had same situation where I live 25 years ago or so, but people were given couple of days to do the exchange.

I think that is a good advise to them and help the bitcoin community. That is the good move of Indian government to curb the proliferation of  fake denomination.

It's always the small people who suffer like these. I'm pretty sure most of those who held  illegal tenders would have found some way to trade/convert.
https://i.imgur.com/p9afmLZ.jpg

It's a bold move, and yes it could be better for the long term, but I'm pretty sure the damage to ordinary folks is pretty high too. That's 86% of cash in circulation. And they all have to be exchanged in banks.
https://i.imgur.com/QutMKQH.jpg

It's not as if this would prevent 'black money' and 'fake currency' from turning up again in the future. But yes, meantime the government essentially gets back/void all these untaxed and fake currency.

http://www.bbc.com/news/world-asia-india-37933231
http://globalnews.ca/news/3060319/chaos-in-india-after-pm-voids-86-of-currency-notes-to-tackle-underground-economy/

Not entirely; the money streams in black markets/corruption are usually quite big, which make it preferable for the use of high denominated notes. Making these notes not legal anymore, rises a big problem for at least the current (black money) assets into circulation; since them high denominated bills now have become 'useless', one might have a hard time explaining when they want to exchange a huge stack of them into lower legal ones. What this resolution does, is not directly counter black money and/or corruption, but more indirectly; it cripples the current system i.e. black money flows (for the time being, because new ways will surely be found eventually) on one side, and on the other side reveal potential 'hot spots' where that current black money resides.