India Bans Its Largest Fiat Currency Notes

[bryant.coleman]

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.

You are completely wrong and misinformed. The new ₹ 2,000 banknote is already in circulation. The new ₹500 has entered circulation today. So higher denomination notes are also in circulation, in addition to the lower denomination (₹10 to ₹100) notes. The only issue is that there is a shortage of the ₹500 banknote. In the coming days, this issue will also be resolved.

[Dudeperfect]

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.

Yes, current prime minister of India Narendra Modi is very pro-active for cash less society, entrepreneurship, attracting foreign direct investment, digital India and many other reforms so I believe that he won’t bring any ban or restriction on bitcoin as far as bitcoin is not being used for the purpose of tax evasion.

[Sithara007]

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

This is a great opportunity for Bitcoin. But the problem is that very few people are aware of it in India. However, the other online payment applications are exploiting this opportunity to capture market share. During the past few days, hundreds of thousands of merchants have started accepting payments through PayTM, a mobile payment platform.

[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.

You are completely wrong and misinformed. The new ₹ 2,000 banknote is already in circulation. The new ₹500 has entered circulation today. So higher denomination notes are also in circulation, in addition to the lower denomination (₹10 to ₹100) notes. The only issue is that there is a shortage of the ₹500 banknote. In the coming days, this issue will also be resolved.

Check my next post for what I meant.

[Sithara007]

Yes, current prime minister of India Narendra Modi is very pro-active for cash less society, entrepreneurship, attracting foreign direct investment, digital India and many other reforms so I believe that he won’t bring any ban or restriction on bitcoin as far as bitcoin is not being used for the purpose of tax evasion.

Can't be very sure about it. There is one positive thing though. The last RBI governor (Raghuram Rajan) was rabidly against the Bitcoins. He banned exchanges and other BTC ventures from setting up bank accounts and harassed them to no end. He was fired a few months back.

[OROBTC]

...

It's also possible that people in India will NEVER have any trust in their government and central bank.  It would only take a fairly low percentage of the population to decide to accumulate "alternative savings" wholesale, and for many, many others to to buy a little BTC and/or gold & silver to change the global markets for all three.

Long Au, Ag and BTC. 

Worldwide.

[clickerz]

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

This is a great opportunity for Bitcoin. But the problem is that very few people are aware of it in India. However, the other online payment applications are exploiting this opportunity to capture market share. During the past few days, hundreds of thousands of merchants have started accepting payments through PayTM, a mobile payment platform.

I think and hoping they will be buying or parking their money on bitcoin. Or they can have business and let their money help the economy and provide jobs to the deserving ones.

[Dudeperfect]

Yes, current prime minister of India Narendra Modi is very pro-active for cash less society, entrepreneurship, attracting foreign direct investment, digital India and many other reforms so I believe that he won’t bring any ban or restriction on bitcoin as far as bitcoin is not being used for the purpose of tax evasion.

Can't be very sure about it. There is one positive thing though. The last RBI governor (Raghuram Rajan) was rabidly against the Bitcoins. He banned exchanges and other BTC ventures from setting up bank accounts and harassed them to no end. He was fired a few months back.

Yes and Rajan (former governor) was also against some latest decisions taken by government. Anyway, getting first step towards cashless society is a positive thing for bitcoin. At this moment the companies like paytm (owned by jack ma) is getting most benefits because of such decisions and there is a scope for crypto currencies too and I am eagerly waiting bitcoin to see appear in day to day life.

[shinratensei_]

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

This is a great opportunity for Bitcoin. But the problem is that very few people are aware of it in India. However, the other online payment applications are exploiting this opportunity to capture market share. During the past few days, hundreds of thousands of merchants have started accepting payments through PayTM, a mobile payment platform.

I think and hoping they will be buying or parking their money on bitcoin. Or they can have business and let their money help the economy and provide jobs to the deserving ones.

It's too far for think if they have put his money on bitcoin? It is just about pulling back his large currency notes. It can make non-sense for me.

[Victorycoin]

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.

Now it sounds confusing and seems misleading for a government to ban a high denomination only to replace it and introduce yet another with a higher value. Not a very good decision from economic point of view and if indeed, they were pursuing a cashless society agenda. Even the rumour about planting Nano GPS chip on the 2000 banknotes turns out to be true, it won't accomplish much, because those who have something to hide would definitely avoid it, knowing those notes are tracked.

[croutonhexagon]

I had heard that the new 2000Rs note will have embedded NATO GPS CHIP which will transmit data to satellite which will help government to track the amount of money stored in a suspicious area for a long time then Tax department will take action against it to tackle with three situations. I think it's a best idea that MODI could ever decide.

[Techie5879]

I had heard that the new 2000Rs note will have embedded NATO GPS CHIP which will transmit data to satellite which will help government to track the amount of money stored in a suspicious area for a long time then Tax department will take action against it to tackle with three situations. I think it's a best idea that MODI could ever decide.

That's a wrong thing..search it on Google, Reserve bank of India confirmed that that's not the case...it's just a wrong information that has gone viral over social media.

[rajasumi2]

i think the best way to control black money is by starting the use of bitcoins or any other single decentralized currency which is better i guess. inn this way there will be no black money and there will be a huge control on the racket of bitcoins .well i think there should be a education system onn bitcoins and it should be done as soon as possible..

[Sithara007]

Yes and Rajan (former governor) was also against some latest decisions taken by government. Anyway, getting first step towards cashless society is a positive thing for bitcoin. At this moment the companies like paytm (owned by jack ma) is getting most benefits because of such decisions and there is a scope for crypto currencies too and I am eagerly waiting bitcoin to see appear in day to day life.

PayTM is rapidly expanding its market share, through various promotional offers. It is having the backing of large number of industrialists and businessmen. Bitcoin lacks any such backing.

[veleten]

read an article today about a boy in India who died because the hospital refused to take one of the notes
the operation cost was 6.000 RS and one of the 500 notes was not accepted so the parents had to take the boy to a different hospital
he died on the way
and all because of a 500 note,this is so sad

http://www.independent.co.uk/news/world/asia/baby-died-hospital-india-refused-to-accept-parents-money-banknotes-mumbai-modi-cash-crisis-dies-a7416336.html

[Rockie1234]

While I do agree it shows the unreliability of traditional fiat currencies, this policy does make sense.
Not speaking from personal experience, but only 2 to 3% of people in India actually pay income tax, so this should get rid of "black money." However, obviously this policy is too extreme, and has caused problems to so many that it really can't be justified.

[BiTZeD]

Such news are the ones that make me proud of owning bitcoins and precious metal and using all my fiat to buy more bitcoins.

[countryfree]

read an article today about a boy in India who died because the hospital refused to take one of the notes
the operation cost was 6.000 RS and one of the 500 notes was not accepted so the parents had to take the boy to a different hospital
he died on the way
and all because of a 500 note,this is so sad

http://www.independent.co.uk/news/world/asia/baby-died-hospital-india-refused-to-accept-parents-money-banknotes-mumbai-modi-cash-crisis-dies-a7416336.html

Terrible news but it was bound to happen. That's the power of governments. They say they act to help or protect people but while doing that theirs stupid policies also cause some unfortunate poor people to die. I hope the parents who've lost a son will have the courage to bring the body to the house of the prime minister. Because he could have allowed hospitals to accept any currency. I see Modi as 100% responsible of this death.

[shinratensei_]

read an article today about a boy in India who died because the hospital refused to take one of the notes
the operation cost was 6.000 RS and one of the 500 notes was not accepted so the parents had to take the boy to a different hospital
he died on the way
and all because of a 500 note,this is so sad

http://www.independent.co.uk/news/world/asia/baby-died-hospital-india-refused-to-accept-parents-money-banknotes-mumbai-modi-cash-crisis-dies-a7416336.html

Terrible news but it was bound to happen. That's the power of governments. They say they act to help or protect people but while doing that theirs stupid policies also cause some unfortunate poor people to die.

That's stupid bait from the government while they a great criminal in his country. A lot of people were losing his money caused by this. And they'd think again for supporting his government.

[GreenBits]

I heard that there was a redemption period before the publically announced one, where wealthier individuals were allowed to exchange black notes for fresh notes, ahead of the lines. Has anyone else heard this/ is this true?