Bitcoin Forum

It's big news for this billion people nation. Some might want to transfer part of their wealth into Bitcoin. http://www.financialexpress.com/india-news/live-india-marks-its-presence-as-a-bright-star-in-global-economy-pm-narendra-modi/441332/  

http://qz.com/830858/why-narendra-modis-move-to-ban-500-and-1000-indian-rupee-notes-is-such-a-big-deal-explained-in-one-chart/

...To release new 500 and 2k notes. This is also just to remove counterfeit notes. Nothing to see

Yeah Im pretty sure this is just a redesign to prevent counterfeiting.
(The US did a redesign of all large bills recently for the same reason, Im sure other countries have as well.)

Well actually no. It is an aggressive method for getting at corruption. It came as a huge surprise, and loads of ppl are reacting. Sure it has some extra benefits that can prevent counterfeiting, but this is not what this is about. In India, almost all medium and small businesses use cash, and that is something the millions of government employees take advantage of. Now ppl hav until November 30th to exchange their cash, after that only one bank will exchange the money, and there is paperwork. So good news for BTC if at least some want to move their funds over to BTC from cash. So it is all about corruption and black marked money.

I doubt that this fact will make Indian people suddenly switch their mentality and accept Bitcoin.
Removing high denomination banknotes only shows scale of corruption and illegal activities in India - in case you didn't know 1000 rupee = $15
Also instead of prevention, I rather think it is rather dead end of their crime prevention attempt.

it's going after black money. declare it so you depositvor exchange or bin it. pretty nifty move on their part.there ain't much getting around it.

however indians love their gold the most.

You aren't buying bitcoin without depositing cash to purchase those coins so switching to bitcoin won't happen.

All those people hoarding cash from illegal means just watched their wealth vanish in one announcement. If you're a law abiding citizen and have paid your taxes all you need to do is show up at the bank and they will convert your 500 1000 notes to the new denominations and check your ID. If you have black money in India stacked up, you're now left with two options, go to the bank to change the notes in which case you're probably going to be investigated thoroughly put in jail or you do nothing and see all your black money turn into useless paper.

this is an strange attempt to fight the black market and it is going to be hitting the Indian economic pretty hard.

but again this won't have any effect on bitcoin price because like many other situations somewhat similar to this, people won't be rushing to buy bitcoin because their economical state is bad.

They already are used to crisis, they had survive n the most difficult situation so nothing can stop their progress still. I remember they are one of the countries that had also launch their space exploration.

Well I don't think that it would affect anything that much... If they wanted to crack down on black markets then they probably should just raid the obvious spots... But yeah, counterfeit notes can't be turned into banks so I guess a smart move.

I actually think there will be lots of problem to poor level families in India who are also illiterate to use banks. Even banking systems not seem to be well spreaded to meet low standard families in remote areas. As well as this rule may become quite tedious for foreign tourist as Indian fiat is not that stronger so tourist may have to spend more than 100 to 200 USD per day but they have to carry lots of 100 priced Indian notes which will be really hard.

However this rule may result decrease in corruption as well as black money which have been really a big problem for India from lots of years.

similar financial crises have happened in different countries, granted India is a big country with one of the highest populations in the world but people are not so eager to invest in bitcoin, and most of them don't even know bitcoin exists specially in third world countries that they have trouble even finding internet in some areas.

Internet will not be a hurdle anymore as mobile internet and awareness on technological advancement is rapidly growing across all tier of countries.

This time India may not go for bitcoins (I am not sure, gold surged up due to India's recent drastic policies so all other alternate investments also may get boost), but in near future will choose bitcoins as no one will invalidate it over night like India did with their currency notes.

Even if anyone wants to move to BTC but will the seller will accept the 500 or 1000 Rs. note. and it is banned from 8th November midnight from 10th November you can change from bank but with terms and conditions. Till 30th December you have time to change the currency after that they will become ordinary toilet papers.

This step has taken to curb corruption, and bring back the black money. Till 30th December any one can deposit the black money and after detecting 30% tax balance amount will be deposited in Account , like this black money tax is also collected.

Holy crap  :o

We will be seeing alot more of that, all over the world, very soon.

The reasons they give are, of course, cheap excuses. The real reason is: Government filth has to let the air out of the fiat bubble and scare people from moving their money off bank accounts, into cash....

So 30% tax, is it? After that 100%? Let's see....

Gold owners ... 0% loss
BTC owners ... 0% loss

Long term imho they are shooting themselves in the foot; rupee was already under pressure, now alot more gold will be smuggled into the country, cuz no one in their right minds will ever trust rupee bills of any size anymore.... :-\

Future of fiat money explained for noobs

https://www.youtube.com/watch?v=HMc3fvm7m7s

Ok actually Indian have option and time to deposit their all R500 and R1000 notes in their banks but what about all those indian currencies roaming around Nepali market which has been spreaded due to open border as well as both government have accepted it is free to use indian big currencies also here in Nepal.

There are many businessman who have to deal and store larger sum of indian big notes for purpose of business, and Indian government haven't announce anything related to indian big notes here in Nepal. I have around $100 worth of indian 1000 rs notes which i haven't saved purposely but it get into my hand while shopping which i can't deposit to my local banks as they have already stopped accepting it overnight when modi announce in india. Our reserve banks have said it will allow to convert them only if indian government allow. This had been good lesson for me and us to never trust centralized government banks, they don't have rights to just make our cash into just worthless paper overnight. I will open bitcoin exchange platform without getting any license from our government they are free to whatever they like. >:( >:(

This may be a try to make black money worthless but i have heard that many of such black money are currently being used to buy gold and silver so that they don't have to show their source of those money and actually the one who sales gold can easily shows how those money have came to him. Whatever government try to stop black money, people will find a way to clean their money and may be some may have used their money to buy bitcoin if they know about bitcoin rather than buying gold.

Looks like India has goxxed their citizens

Lesson is, you cannot own fiat money, book money or physical cash

Perhaps you have a friend overseas who can convert the bills at a currency exchanger? Are these bills accepted by foreign banks?

No! The Indian Government hasn't scammed the citizens and they're doing this only to counter fake currency notes that have been printed and circulated within India to devalue the currency. It has also been done to ensure that all those holding hoards of cash at their home under their beds and received those cash without paying their Income taxes will have to deposit the same in their bank accounts and ensure that they provide a statement of how they've attained such a large sum of cash and show Income Tax proofs. Also, no, it's illegal to exchange the old notes at any exchange, go to any exchange here and they'll deny it. It's also illegal abroad to exchange the old notes as I've confirmed from a family member as well. They have been termed as illegal tenders and is as worthless as paper unless exchanged with the bank (where the bank provides a small sum of exchanged money in hand and the rest is deposited in a bank account). This also ensures that majority open a bank account if they have to exchange/deposit sums larger than Rs 4000, which I'm sure many will.

This is correct and the reason was simple corruption was it at highest and to avoid there was not solution left other than this. So finally decision came to ban the notes as there were fake currency as well in the market.

Off topic, back here in the USA, another example of how you don't have the right to use your money.


On topic,

The Indian government is exemplifing how you don't have a right to use their money. And they do it under bullshit pretenses such as counterfeiting.

Basically physical cash is their property. It was never yours. You do not have a right to it. And you do not have a right to freely trade in it. And like a mafia protection racket, they get a piece of any cash/money you make. You are their slave, get it? And you are Using their cash, get it. They can do what they want.

Im going to call bullshit on this one. Why couldn't they phase in a new note that was counterfeit proof

Edit. Its a tax grab( for their mafia protection racket scheme) , as Martin Armstrong says

this solution could be a real one to avoid scam and counterfeit?  I don't think so, probably the really meaning of this move is another one.