500 and 1000 Re Notes Demonetized

[polynesia]

http://www.thehindu.com/news/national/live-narendra-modis-address-to-nation/article9320548.ece

From midnight of November 8, 2016, Rs. 500 and Rs.1000 will cease to be legal tender. "These notes are just papers from tomorrow," says the prime minister.

Taking the nation by surprise, Prime Minister Narendra Modi on Tuesday night announced demonetisation of Rs. 1000 and Rs. 500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.

In his first televised address to the nation, Mr. Modi said people holding notes of Rs. 500 and Rs. 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.

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[erikalui]

There will be other ways found by those who own black money and illegal gold/drug trading will increase now. But still it's a great step by the Government to ban these notes. All those who have black money will need to exchange it today itself or those notes will be worthless tomorrow. Still those who have these notes will need to declare it.

[polynesia]

There will be other ways found by those who own black money and illegal gold/drug trading will increase now. But still it's a great step by the Government to ban these notes. All those who have black money will need to exchange it today itself or those notes will be worthless tomorrow. Still those who have these notes will need to declare it.

You can declare income on which tax has not been paid. But what about income obtained through illegal means?
This is a one-time measure, but the government cannot expect this to put an end to bribery, corruption, etc.
Systemic change is required.

[bitcoinisbest]

What a initiative taken by government. This is something out of the box for the government to do it.  Many of the politicians itself have the money and taking this bold step is really appreciated. Now let us see how much it will be organized.

[Scott J]

This is simply shifting the problem, not solving it.

Will they eventually ban cash completely?

[eaLiTy]

This is simply shifting the problem, not solving it.

Will they eventually ban cash completely?

its not about shifting the problem its about countering black money and counterfeit currency ,the government earlier given a time to settle the illegal funds accumulated by paying 45% tax and that period is over and now all of sudden they demonetized higher value notes and gave the citizens little or no breathing time to change the currency.So from tomorrow you wont be able to spend 1000 and 500 rupees ,so people holding large amount of cash at home wont be able to change it ,the only solution is you can submit your notes in bank and make a declaration and you get one month time to change all your currencies through bank

[erikalui]

There will be other ways found by those who own black money and illegal gold/drug trading will increase now. But still it's a great step by the Government to ban these notes. All those who have black money will need to exchange it today itself or those notes will be worthless tomorrow. Still those who have these notes will need to declare it.

You can declare income on which tax has not been paid. But what about income obtained through illegal means?
This is a one-time measure, but the government cannot expect this to put an end to bribery, corruption, etc.
Systemic change is required.

There will be a limit to the amount of cash that can be declared and hence those who own illegal cash will lose all that money as it will be equal to trash. It won't stop bribery but there will be now other means used to store black money instead of only relying on notes. It's the first step atleast.

[polynesia]

This is simply shifting the problem, not solving it.
Will they eventually ban cash completely?

Yes, it is a step which will help catch people who had stored their ill-gotten wealth in cash.
People will become smarter and turn to golds (and possibly bitcoins  ) now.
But structural changes are required to curb black money. These one-time measures won't work.

[cruguy]

Now the game starts. Now bitcoin rate will go crazy in india, now people find alternate ways.

Guys, this step will be a game changing thing in india. Now rich becomes obviously poor.

[chronicsky]

This has really been awesome
Am sure many people and politicians are losing their mind.😂

[apoorvlathey]

That's a very bold and surprising act by our hon. PM Modi. Finally, the black money would get back to the government and the corrupt people would just sit and cry  Although there is some chaos as people have less 100 rs notes but it would soon get back to normal.

btw, would there be any significant effect on the price of bitcoin after this ?

[bitcoinisbest]

Now the game starts. Now bitcoin rate will go crazy in india, now people find alternate ways.

Guys, this step will be a game changing thing in india. Now rich becomes obviously poor.

Well certainly may not be the case. Assume you hold 10 btc and the buyer is ready to give you rate + some % premium and will give you 500 and 1000 notes which basically is black money. So then why will you like to land in the trap for yourselves when you know IT will be watching and coming back to you for this transaction. So you will avoid such cases.

[KJBit]

How would this have any effect on the bitcoin sale? Nobody will sell their bitcoin for 500 or 1000 notes, right?

[tradesman]

This move although being hailed by masses as a 'revolutionay' of sorts is just another in a series of attempts by governments worldwide in the Global War against Cash. The central banks are pushing hard to eliminate every single trace of cash from the economy which they offcourse can't monitor. All the reasons for which governments/bankers hate bitcoin, apply to cash too and they are hellbent on destroying whatever is left of individual's liberty. This is just a step towards total elimination of cash. What may follow afterwards is beyond people's worst nightmares. How about Negative interest rates for starters?

[21BTC]

Guys who made a fortune in black money will be smart enough to save his ass,and asset.Those greedy ass people who keeps there black money in form of cash are really dumb and now they are trapped.They should have learned about bitcoin.That's the only reason i love bitcoin.It gives us power to control our money and no government can freeze our account.

[Jessica136]

I got to know news last night.. It would affect general people. Those who are living in village or road side vendors will face problems. So, those who are not aware of this Rs 500 and Rs 1000 they will be in trouble.

I am feeling very sorry for Indians..

But its a great opportunity those who are using BITCOIN. At this time BTC will save you.. .

[Jessica136]

This has really been awesome
Am sure many people and politicians are losing their mind.😂

Exactly! The black money holder will be in trouble and politicians are thinking why MODI has announced this rule... 

Anyways, Hats off to Modi..A Dynamic and smart PM of India.

[polynesia]

Now the game starts. Now bitcoin rate will go crazy in india, now people find alternate ways.

Guys, this step will be a game changing thing in india. Now rich becomes obviously poor.

Well certainly may not be the case. Assume you hold 10 btc and the buyer is ready to give you rate + some % premium and will give you 500 and 1000 notes which basically is black money. So then why will you like to land in the trap for yourselves when you know IT will be watching and coming back to you for this transaction. So you will avoid such cases.

What about the black money generated in the future? People will be hesitant to store them in the form of currency notes.
That is where alternative assets like Bitcoin can step in. 

[21BTC]

Now the game starts. Now bitcoin rate will go crazy in india, now people find alternate ways.

Guys, this step will be a game changing thing in india. Now rich becomes obviously poor.

Well certainly may not be the case. Assume you hold 10 btc and the buyer is ready to give you rate + some % premium and will give you 500 and 1000 notes which basically is black money. So then why will you like to land in the trap for yourselves when you know IT will be watching and coming back to you for this transaction. So you will avoid such cases.

What about the black money generated in the future? People will be hesitant to store them in the form of currency notes.
That is where alternative assets like Bitcoin can step in.  

Exactly and it will be postive thing for bitcoin price 

[bitcoinisbest]

Now the game starts. Now bitcoin rate will go crazy in india, now people find alternate ways.

Guys, this step will be a game changing thing in india. Now rich becomes obviously poor.

Well certainly may not be the case. Assume you hold 10 btc and the buyer is ready to give you rate + some % premium and will give you 500 and 1000 notes which basically is black money. So then why will you like to land in the trap for yourselves when you know IT will be watching and coming back to you for this transaction. So you will avoid such cases.

What about the black money generated in the future? People will be hesitant to store them in the form of currency notes.
That is where alternative assets like Bitcoin can step in.  

Exactly and it will be postive thing for bitcoin price 

To buy btc you will have to make payment which will happen via bank unless you make cash payment with 100 Rs note. So anyways your 500 & 1000 is out of scope. So overall you would anyways be left without  much. BTC may not be a life savior much.