India Bans Its Largest Fiat Currency Notes

[arcanaaerobics]

Notes are so unsafe and not cheap to government print just like the coins...

And that's why cryptocurrencies are the future, we started trading goods, after metals, paper and now bytes.

[marleybobthedog]

 Actually Indian government is not banning the highest denomination (₹500 and ₹1,000) paper notes. They are simply replacing the old notes with the new notes. And they have introduced the ₹2,000 banknote, which didn't existed earlier and news rumoured that there will be Nano GPS Chip in the note which will help tax department to track money through satellite.

[7788bitcoin]

Replacing the old notes is not something new, but the way it is done is. I hope the banks are still willing to exchange the old notes for equal value of new notes for long enough. I guess many unbanked people in India are keeping their money using the notes and not bank accounts.

[LLec]

Every currency in the world does this. It is not a ban but a replacement because of forfeiting the current money is the only way they know how to curb the counterfeiting trade.

[Labumi]

I think their solution was a joke and some people might've realized that their government isn't as smart as they think.
Maybe people will start to think a way to save their money in case economic crisis.

Ahah, this is all because the Government could not see the advantages given by bitcoin and they only concerned with individual interests than seeing the voice of the people. So they took the decision that actually does the right thing to do. But it all will not give negative impact, because those who want to use the bitcoin can still do so using the VPN or other. All of this just as a test for the users, and I am sure if one day bitcoin will be recognized by all countries

[qiwoman2]

I think not only black money will be affected here but a lot of fake banknotes that are going around. i think this is good in one sense and better for bitcoin as more and more educated people will seek to turn their fiat into either gold or bitcoin or both.

[BADecker]

Fiat and Bitcoin, and every other form of money, are essentially the labor of the people.

Governments are trying to suck up every dollar they can get. They are trying to eliminate the competition. They are using the sucked-up money to prepare for war. This does not look good for Bitcoin. Why? Because Bitcoin is sucking the money back to the people again.

The only way to grab the money is to destroy Bitcoin, or adopt her. Either of these things will not be an easy task for governments at this stage of the electronic/internet game. Attempts to absorb or destroy Bitcoin may result in a great big crash of the fiat Ponzi, worldwide, before Bitcoin is out of its infancy. This might destroy Bitcoin, as well, and turn the world into chaos.

[housebtc]

The information here is not true "not the largest Fiat currency note", we should try as much as possible to read the whole content of a news and not rely only on sensational headlines

[Digitalbitcoin]

Its true that India have banned Largest Fiat Currency Notes in India to eliminate black money from Market, as 86% of currency is used in India with note of 500 Rs and 1000 Rs. I think This decision can really reduce black money supply to market, Its true but its too dangerous for common people who are genuine and stake some of note for security of financial freedom.

Still in India new launched currency note are not distributed to bank to avail for common citizen.

I personally think that bitcoin or any other decentralized digital currency can give best solution for such crisis of money supply and for reduction of black money use with centralized government acceptance with regulation for digital currency.

[Victorycoin]

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..

What you should pray instead is for there to be an effective and efficient cashless system in your country than the illusion that those top currencies does your country any good. In reality, those top currencies would be the main reason your grocery would get to be sold at a much high rate, because the small currencies sooner than later lose their purchasing power.

I must commend India for taking that step and it could not have come at a better time, than now as they concentrate their efforts to develop and advance their country. It is something other developing countries should embrace and you will find that it is even the poor countries that hasten to create high currencies notes and not so much for the interest of the country, but simply to facilitates looting by their very corrupt rulers.

[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.

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.

Not really. AFAIK, most of the politicians became safe even some peoples who's having black money. As this news was leaked before few days. I don't want to mention their name and company and they had gifted new cars to all their employees with n agreement that they should sell those cars after two months!

[Techie5879]

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.

This is WRONG. New INR 500 & INR 2000 notes will hit ATM in November only. I have information that they have already been sent to bank chests. Government of India is trying its best to heal the pain of common people.

I agree...but I meant that the circulation of those notes will be finished obly in January. They have already been sent but very few banks have received them till date. Some banks are receiving them as we speak. That's the reason of the long queue. So, there is no water circulation will be finished before January 2017.

[Aamir1]

It can somehow be a good decision regarding that black money thing but i don't feel that this thing will bring any change for bitcoin in India or anywhere, maybe the people keeping cash at homes would convert their money into bitcoin if they know about it, but it is not likely to happen.

[Techie5879]

It can somehow be a good decision regarding that black money thing but i don't feel that this thing will bring any change for bitcoin in India or anywhere, maybe the people keeping cash at homes would convert their money into bitcoin if they know about it, but it is not likely to happen.

In India, about 10% of the whole population knows about bitcoins, so it's not likely that they will convert their money into btcs. The ones that do know about bitcoins will consider it a fatal risk to convert even some of their money into bitcoins, as, in India, unfortunately, most do not even believe in online shopping sites like Amazon. They consider trusting Amazon a fatal risk. So, I don't think many people of India will convert their money into bitcoins, even after this incident.

[whizter]

Its true that India have banned Largest Fiat Currency Notes in India to eliminate black money from Market, as 86% of currency is used in India with note of 500 Rs and 1000 Rs. I think This decision can really reduce black money supply to market, Its true but its too dangerous for common people who are genuine and stake some of note for security of financial freedom.

Still in India new launched currency note are not distributed to bank to avail for common citizen.

I personally think that bitcoin or any other decentralized digital currency can give best solution for such crisis of money supply and for reduction of black money use with centralized government acceptance with regulation for digital currency.

yes that a fact that they have taken the step to stop the black money in the market but i thin it will not help them so much, they need to take a positive action again the smugglers and the illegal printed currency center they need to vanish the evil from the root and only it will be fruitful.

[OROBTC]

...

There is a YouTube video out which tells that gold is now selling in some parts of India for a majestic $3000 / oz (US market price about $1228).

The parts of India that my wife and I visited (on a tour) were not ready for Bitcoin (that included Mumbai/Bombay and Delhi) that I could see.  Our guide had not even heard of Bitcoin. 

India also has a HUGE rural population that is very poor with little infrastructure.  Bitcoin will do very little for Indians in the short-term.

[Techie5879]

...

There is a YouTube video out which tells that gold is now selling in some parts of India for a majestic $3000 / oz (US market price about $1228).

The parts of India that my wife and I visited (on a tour) were not ready for Bitcoin (that included Mumbai/Bombay and Delhi) that I could see.  Our guide had not even heard of Bitcoin. 

India also has a HUGE rural population that is very poor with little infrastructure.  Bitcoin will do very little for Indians in the short-term.

You are right, most of India hasn't even heard of Bitcoins. And those who have just either don't have an internet connection (yes, that's pretty common in India, not having internet connection) or think of Bitcoins as a huge risk. It's just the view point of people, they don't even trust online marketing, let alone trusting a currency that is pretty unstable, like, *cough* Bitcoin*cough*. Even some people here who don't have the basic concept of how mobile phones work, think that when they are talking to a person on a mobile is some fake person. So, this eradication of the largest Fiat notes won't have much effect on people of India buying Bitcoins.

[Xester]

Actually Indian government is not banning the highest denomination (₹500 and ₹1,000) paper notes. They are simply replacing the old notes with the new notes. And they have introduced the ₹2,000 banknote, which didn't existed earlier and news rumoured that there will be Nano GPS Chip in the note which will help tax department to track money through satellite.

Thank you for clearing things out,i really thought that they are getting rid of 500 and 1000. And it is a shocking news that theyre releasing a 2000 banknote with Nano GPS Chip. Maybe this time laundering of money and taxation will be implemented clearly.

[Techie5879]

Actually Indian government is not banning the highest denomination (₹500 and ₹1,000) paper notes. They are simply replacing the old notes with the new notes. And they have introduced the ₹2,000 banknote, which didn't existed earlier and news rumoured that there will be Nano GPS Chip in the note which will help tax department to track money through satellite.

Thank you for clearing things out,i really thought that they are getting rid of 500 and 1000. And it is a shocking news that theyre releasing a 2000 banknote with Nano GPS Chip. Maybe this time laundering of money and taxation will be implemented clearly.

No, they aren't banning those, but the circulation of the new notes of those denomination won't be fully complete until Jan of 2k17. Meanwhile, we are getting 2000 Rs. Notes more frequently and most shops aren't taking those notes, as, if we buy stuff worth Rs. 50, tell me , who would give 19 Rs 100 notes and one Rs. 50 in exchnage for that brand new 2000 Rs. note. It is jur making things difficult for us.

[posternat]

Notes are so unsafe and not cheap to government print just like the coins...

And that's why cryptocurrencies are the future, we started trading goods, after metals, paper and now bytes.

So it means that In India and in other countries, Bitcoin can have a really good future. Paper currencies notes if cancelled become zero in value, while on the other hand No Govt. can make the value of bitcoin to zero , as it is not in the hands of the Govt.