India Bans Its Largest Fiat Currency Notes

[arcathomas]

500 rs is only 7€ 
Indian contry is so poor they ban 7€ note 

[izlevinv]

do you guy think this can lead to an increase of adoption for bitcoin, since to do black market now they need somethign else, because with cash it will be more difficult for them to do it, there might be a chance for them to use bitcoin more, thus the price will increase because of more buyers from india

People from India will start using bitcoins only if they are aware about it and I don't think many people knows about it at this stage but the scenario can be changed over a period of time as of now people are busy in using their black money in buying gold so that they can at least have some investments for the future.

[countryfree]

Indians queuing to exchange their cash



Hey, what are you doing, today?
I'll spend the whole day at the bank, exchanging my cash...

Governments have such a twisted mind, they have invented the concept of black money (or dirty money). Money which is earned the usual way, by hard working people, but the government wants its share of it, just like the mafia, you know. So, it resorts to extortion, by forcing people to come out with their money, so the bad guys can get a piece of the cake.

[Hugroll]

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

I read about this couple of days ago, I think this is a step in the right direction to get rid of the dirty money and introduce a better economy to the country. Also this could bring more customers to bitcoin if it makes them feel safer to own btc than to own the fiat currency.

[Hugroll]

500 rs is only 7€  
Indian contry is so poor they ban 7€ note  

Stop being so condescending. How does inflation in a country relate to the country being poor?   

Thats like saying 0.01 is 7 bucks so the people who use bitcoin must be extremely rich. Completely untrue.

[Roboabhishek]

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

You missed the Rs.100 note , the most important note currently for these few days. I am an Indian myself, and overall i like the step taken by PM, some people are angry because it would cause a major inconvenience for few weeks but this is huge step in reduing black and I believe that this would actually make some difference.

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.

You have wrong information my friend, the new Rs. 500 and Rs. 2000 notes will be available in ATMs and Banks from 10th November itself.

Yup it's true what he did is correct now think what will happen to those who are holding black money in 20,000BTC + in INR currency
I think that they cant do anything to it now rather than burning it away.
Also i got a news locally that some guys thrown worth 80BTC of INR cash on the road from car.

[Roboabhishek]

500 rs is only 7€ 
Indian contry is so poor they ban 7€ note 

yup only 7 euro .
What do you think if some people are having 100,000+ Notes of 500 Rs which is stored as black money in the form of 500 & 1000 Rs Notes.

[Rude Boy]

This will not stop holding black money or black money holder in anyway. They might already changed the currency to USD or some other currency and they'll not be catch on red hand imo.

[Dudeperfect]

500 rs is only 7€ 
Indian contry is so poor they ban 7€ note 

Stop being so condescending. How does inflation in a country relate to the country being poor?   

Thats like saying 0.01 is 7 bucks so the people who use bitcoin must be extremely rich. Completely untrue.

Then 500 euros are equal to 165 Kuwaiti dinars so you would also apply your logic to this inflation rate too right?

Dear, growth of the economy depends on many factors and to measure the growth of it, there are some key factors such as gross domestic product, gross domestic income etc. It’s baseless to determine the status of a country by considering any single factor if you are expecting fair results in analysis.

[error08]

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!

This is one proof lack of paper money that refers to deploy of black money and could cause inflation .
Bitcoin may get more positive result as solution to choose digital currency and have greater control of funds, lower fees, more secure and immutable.

[bitcoinmasterlord]

This will not stop holding black money or black money holder in anyway. They might already changed the currency to USD or some other currency and they'll not be catch on red hand imo.

Not all people can do that easily because if you want to convert it to USD, then you should provide some documents to prove for some purpose or should be done some illegal ways. But this announcement has given many people surprise and even many politicians didn't have any clue of this is going happen. I don't think because of this it will stop, but to some extent, it will reduce the black money.

[Roboabhishek]

It's really scary when you think of it. I've got quite a few banknotes in my pocket, it's money but the government, with a snap of its fingers, has the power to make them worthless. So Indians will have to the bank, and explain where the money's coming from. And the more you have, the more questions there will be to answer. Is this a free world? I'm glad not to be in India!

You really think it was a wrong move to eliminate black money or to bring it back by the gov ?
I think it was a correct move done by the gov of India since everyone will have to show the proof of their earnings including people having black money if they want to get it exchanged otherwise the money they have earned in wrong way is useless " Nothing more than a piece of paper " ...

[ekoice]

I am from india. Its a move to destroy black money stored by corrupt politicians and fake currencies circulated by mafia gangs.Immediately after the announcement on ban, gold worth of several crores got sold in just 2 days.Middle class people suffered a lot by this sudden move by government.Still most people are unaware of Bitcoins.If they would have already known about Bitcoin, they would not have suffered this much.

[eternalgloom]

I don't think this will have any influence over the use of black money, people will just find other means.
I really don't like the trend of moving to a cash-less society..

[Supercrypt]

500 rs is only 7€  
Indian contry is so poor they ban 7€ note  

The buying power would be same, because of the differences in value of money when you exchange 7€ to indian rupees it is a a big money even if it might be small in your country. Even India is poor country, they are contributing a lot to the world economy. I guess, other countries also may follow India's idea on black economy.

[TechnologyExplorer]

Hello,

You are right. The big currency notes have been demonetized. Only Rs 10,20, 50 and 100 are in circulation for next two days. Then again the new Rs 500 and Rs 2000 note will be brought into existence.

May be it was a master stroke by Mr. Modi. But this move can in no way prevent fake currency prevalence in India in future.

And coming to the point of how this will affect Bitcoins....?

Well, there may be a temporary surge in bitcoins buying thinking that all the illegally earned money can be used to buy bitcoins. But it is false in all terms.

In order to buy bitcoins, one should buy them from exchange using fiat currency which is in digital form in your bank accounts. So, you need to have your money deposited in your account. If you deposit more than Rs 2.5 lakhs, it will surely attract the attention of IT department.

So, to all those who are thronging bitcoins exchange sites in a hope that they can make their black money-> white will just receive a big disappointment sooner or later.

[marleybobthedog]

Yes it's a good decision from tax department. It would somehow hep India to completely eradicated internal black money. And from now itself it would become hard to store black money in home because new currency note are coming with computer chip

[Milkduds]

Indians queuing to exchange their cash



Hey, what are you doing, today?
I'll spend the whole day at the bank, exchanging my cash...

Governments have such a twisted mind, they have invented the concept of black money (or dirty money). Money which is earned the usual way, by hard working people, but the government wants its share of it, just like the mafia, you know. So, it resorts to extortion, by forcing people to come out with their money, so the bad guys can get a piece of the cake.

Standing in line with all the bills in the air for some one to snatch and run off!

The crack down in India will be studied by other Countries and most likely copied to achieve more power over the currency. The USD is one of the most mattressed currencies in the world and any move to change the bills would cause a global ripple. One thing I always notice when travelling abroad is the guys with the briefcases in the local square that help the unbanked at a high percentage. Imagine those guys in India are making serious profit right now.

[classicsucks]

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.

A US federal prosecutor stated that you can't shut down bitcoin. http://motherboard.vice.com/en_ca/read/us-federal-prosecutor-you-cant-shut-down-bitcoin-kathryn-haun

I don't know how they would "divvy up the funds between the elite" with one click?

[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.

A US federal prosecutor stated that you can't shut down bitcoin. http://motherboard.vice.com/en_ca/read/us-federal-prosecutor-you-cant-shut-down-bitcoin-kathryn-haun

I don't know how they would "divvy up the funds between the elite" with one click?

We are not talking bitcoin specifically when we are talking about crypto currency being a wet dream for government.
If a bank or government creates a crypto that is controlled by them,meaning they have written into the code a way to grab all funds or automatically charge interest,then you are one click away from that happening. It is a very clear point and issue,I do not mention bitcoin anywhere in my response.

To address the Federal prosecutor link I will just say the Elect President has gone on record about scraping laws and agreements he deems unfit. So with that same reasoning he could change the outcome and make the "you cant shut down bitcoin" a out of date statement. We have to remember that super powers wane and so does societies norms,you can not presume things are always going to be the way they currently are. To state it another way... Would you rather be prepared for that day or unprepared?