India Bans Its Largest Fiat Currency Notes

[Dudeperfect]

Hello There,

India bans top currency notes such as Rs.500/- and Rs.1,000/- to prevent black money. Now there are only three notes in circulation Rs.10, Rs.20 and Rs.50

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

Google for more news links.

Yes, There are some preventive measures taken to deal with the situation but still it is one of the masterstrokes by India prime minister Narendra Modi against black money.

How do you see this action and what kind of impact this will create on the bitcoin in India?


P-S : Adding some news headline since this move, worth reading

1) No cash, no plastic: India's demonetised economy rushes towards cryptocurrency.

2) India’s rupee restrictions are boosting demand for bitcoin.

3) Digital Currency the ‘New Normal’, says Indian Finance Minister After Cash Curb.

4)  Why Bitcoin Will Succeed in India in Just Two Years.

5)  India Encourages ‘Mission Mode’ Digital Currency Adoption.


Best
Dudeperfect

[Milkduds]

There seems to be a lot of interesting things happening all at once in India and the cracking down on the black market seems to be a important drive for them. Was not long back we where reading about getting people to use banks and limit the gold exposure.

I do not know enough to think it will attract more Indians to bitcoin or not but I think it will create another off shoot business. India is great at creating jobs and its almost something they pride themselves on,as opposed to the West where its all about the bottom line.

Something I saw about India recently that got me thinking about bitcoin,was the black outs that roll through out the day(4-6 per day) and I thought this would be quite disruptive to bitcoin use.

[yayayo]

The EU has already banned the EUR 500 note. Now India is following the stance.

The war on physical cash is in full effect. Fighting black market activities is only a pretext for the true motive: Exerting full control over people's finances to make them fully transparent in order to enforce negative interest rates and higher taxation. It's a sinister plan of central bankers who are desperate to keep the fiat money scam running. They try to prevent capital flight to safer alternatives.

For countries with high inflation like India it's an easy way to slow down price appreciation a bit as well.

Full governmental control over private finances is a horrific scenario, as it exposes the individual to arbitrary coercion by the metastasizing officialdom. Hopefully people will use the exit door soon enough and buy Bitcoin and precious metals.

ya.ya.yo!

[Milkduds]

Sometimes make me think that with bitcoin we are playing right into the hands of the movement to restrict our funds.
Crypto is perfect for governments if they control it and can take it away in one click or divvy up the funds between the elite.
Its funny how those attracted to bitcoin initially wanted less government and now it is starting to look like government is going at it the same for total polar opposite reasons.
There is also a trend of eliminating the lower coins and bills in some Countries to eliminate costs and weighing people down with change.
This always looked to me as a reason to over charge the customer due to not having the smaller change and rounding up.

[jak3]

surely it made the black marketting a lot harder now becaise they have to create many 50rs note to reach 1000rs so we can say their work is now 20x increased with that previous speed and efficiancy but on the other hand all it will increase is lots of notes and digitialization because i myself is not going to carry 500 50rs notes to buy a piece of cake.so i will be forced to open a bank ac

[fortunecrypto]

I hope it will not happen here in our country,those top currencies are very important because money is undervalued you will have to carry a lot of small paper currency when going to grocery,your wallet  will be full of small paper currency..

[Kevin77]

I feel blockchain kind of transparent system must be the right solution for getting rid against money laundry/black economy. I believe financial experts may find many new things from this kind of moves from a government. Lets hope for any possible support for bitcoin ecosystem from this.

[Karartma1]

The EU has already banned the EUR 500 note. Now India is following the stance.

The above is not correct. It has not been already banned but

The European Central Bank announced on 4 May 2016 that it would phase out the 500 euro note by the end of 2018.“Authorities increasingly suspect that they (€500 notes) are being used for illegal purposes, an argument that we can no longer ignore,” according to a high-ranking bank official, Benoît Cœuré.

[Pattberry]

This is a sudden and surprising move by the Indian government to ban large fiat currency notes,if this thing happened in china the price of bitcoin would have reached a new level ,i really doubt with a population of over a billion people many does not have any clue about bitcoin and its investment features

[Cereberus]

Hello There,

India bans top currency notes such as Rs.500/- and Rs.1,000/- to prevent black money. Now there are only three notes in circulation Rs.10, Rs.20 and Rs.50

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

Google for more news links.

Yes, There are some preventive measures taken to deal with the situation but still it is one of the masterstroke by India prime minister Narendra Modi against black money.

How do you see this action and what kind of impact this will create on the bitcoin in India?

Best
Dudeperfect

It will not have that huge impact as the news there is emphasizing. People will be more careful and will have more RS 50 rather than few RS 500. It will not be any problem for the black markets as they will find a way on how to deal with each other, they can do transaction in a car for example, they simply cannot be stopped. The true motive behind such move is to exert more power over the people.

I even checked how big is a RS 500 compared to RS 50 and I think it will be no problem for people to keep more RS 50 with them rather than a RS 500. So this move will not affect anything in terms of economics as far as I know from this field.

[Clement Kaliyar]

It will not have that huge impact as the news there is emphasizing. People will be more careful and will have more RS 50 rather than few RS 500. It will not be any problem for the black markets as they will find a way on how to deal with each other, they can do transaction in a car for example, they simply cannot be stopped. The true motive behind such move is to exert more power over the people.

I even checked how big is a RS 500 compared to RS 50 and I think it will be no problem for people to keep more RS 50 with them rather than a RS 500. So this move will not affect anything in terms of economics as far as I know from this field.

corruption and illegal currency is the biggest problem in india,the ban of rs 500 and rs 1000 all of a sudden is a big surprise and from tomorrow onwards those who are having the said currencies will not have any value and cannot exchange through stores ,the only way to exchange is through banks,since this news is announced in such a short notice it will be difficult for people having large amount of currencies stached inside their home to exchange it .

[arransiv]

Scammers will miss this days on the future, it's so easy to make a note nowadays, you just need the right equipaments and products...
I doubt anyone can copy money in blockchain and that's why the bitcoin is the future.

[Snorek]

The problem I see with that ban is low purchasing power of rupee. 1 rupee is currently worth $0.02 cents so 1000 rupees is roughly 15 USD.
I can't figure it out if government in India is being serious - how banning equivalent of banknotes in denominations of $7 and $15 will help them?

BTW - It is more Economy discussion than Bitcoin discussion, this thread should me moved to Economics section.

[mindrust]

Sometimes make me think that with bitcoin we are playing right into the hands of the movement to restrict our funds.
Crypto is perfect for governments if they control it and can take it away in one click or divvy up the funds between the elite.
Its funny how those attracted to bitcoin initially wanted less government and now it is starting to look like government is going at it the same for total polar opposite reasons.
There is also a trend of eliminating the lower coins and bills in some Countries to eliminate costs and weighing people down with change.
This always looked to me as a reason to over charge the customer due to not having the smaller change and rounding up.

I have thoughts very similar to yours and i created my topic here: https://bitcointalk.org/index.php?topic=1632435.msg16803952#msg16803952

I can't help but think, what if we are signing our own death sertificate by trusting bitcoin so much.

See this? https://www.youtube.com/watch?v=FJNRVptyb9Y&index=7&list=PLZlI71Yh54Tv7xONyTvcstNsP09OUkww8

Bitcoin uses this to promote itself, but i see something different. Your money can go "puff!" with bitcoin too. And its way more easier!

[Yakamoto]

Scammers will miss this days on the future, it's so easy to make a note nowadays, you just need the right equipaments and products...
I doubt anyone can copy money in blockchain and that's why the bitcoin is the future.

Technically it is impossible to make new Bitcoin and actually input it into the blockchain; the only way that you'd be able to do something like that would be to fork the network or something similar. There is no way to just try and force some additional Bitcoin into the blockchain.

Maybe if you had 51% of the network something like that could work, but I'd doubt it.

[countryfree]

This isn't a war against cash, it's a war against the people. The Indian government will introduce a new larger Rs 2,000 banknote. What that fascist government wants is to know who has cash, lots of it. But it's not a choice for millions Indians who do not have a bank account, nor an official address to open one. This is what governments do: they make life miserable for millions.

BTC is a great tool to fight governments, I hope many Indians will have the opportunity to exchange some of their old notes with BTC.

[Ziskinberg]

Well, I guess there's nothing to worry because there's always the crypto world to help on that matter. Wanting to transact in black market? I think monero can take care of that.

For me, it's not surprising as a government can do whatever they feel would be a threat, they want transparency to prevent or see illegal activities.

[MingLee]

That's a unique method of trying to curb counterfeiting, and I wonder if they're actually going to be able to do that and have it work in the way they intend for it to work. I don't know much about India and their economy, but it seems like something like that is a huge blow to at least a decent portion of the citizens of India.

[romero121]

This might help India to grow in economy when most of the black money gets revealed as well government gets benefited from taxation. Unexpected implementation has made people get panic of what to do further to safe guard their black money.

[Techie5879]

Hello There,

India bans top currency notes such as Rs.500/- and Rs.1,000/- to prevent black money. Now there are only three notes in circulation Rs.10, Rs.20 and Rs.50

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

Google for more news links.

Yes, There are some preventive measures taken to deal with the situation but still it is one of the masterstroke by India prime minister Narendra Modi against black money.

How do you see this action and what kind of impact this will create on the bitcoin in India?

Best
Dudeperfect

I live in India, there are 4 notes in circulation now, Rs. 10, Rs. 20, Rs.50, and the Rs. 100.

The new notes will come in circulation from the Jan of 2017.
We just have to wait till then.