India Bans Its Largest Fiat Currency Notes

[Wei H]

It's ridiculous, how could a country ban her legal currency without any advanced warnning?

...

The below links to a very negative article on India's ban of R500 and R1000 notes.  Briefly, it states that Modi is incompetent and dictatorial, and that India never gets complex things done right.  The chaos will get worse.

http://www.zerohedge.com/news/2016-11-16/stunning-scenes-panic-gold-price-skyrockets-india-after-currency-ban

We were in India in Nov. 2015, and saw (and heard) NOTHING among those we spoke with about Bitcoin, even in Mumbai.  So my *guess* would be that India is probably not responsible for today's BTC price spike.

Yes, they aren't, most of them don't even know how to find a way to buy Bitcoin.

[Techie5879]

It's ridiculous, how could a country ban her legal currency without any advanced warnning?

...

The below links to a very negative article on India's ban of R500 and R1000 notes.  Briefly, it states that Modi is incompetent and dictatorial, and that India never gets complex things done right.  The chaos will get worse.

http://www.zerohedge.com/news/2016-11-16/stunning-scenes-panic-gold-price-skyrockets-india-after-currency-ban

We were in India in Nov. 2015, and saw (and heard) NOTHING among those we spoke with about Bitcoin, even in Mumbai.  So my *guess* would be that India is probably not responsible for today's BTC price spike.

Yes, they aren't, most of them don't even know how to find a way to buy Bitcoin.

Lol, not just about buying bitcoin, as I showed above, many are helpless here and cant afford or even know about internet. Most are afraid to trust bitcoin as they dont know its true value. Its just bad, and its not getting better.

[Dudeperfect]

How much is 500 and 1000 rupias?

I saw it yesterday, don't remember where and far I remember, isn't a big value...

Fake notes will always appears in the market, I think it's an smart idea, paper notes are not so hard to fake nowadays...

BUT the population of India was given only THREE days to be able to exchange their old notes

You are misinformed, Indian have 50 days to exchange their old currnecy notes. And Even if someone could not change their currnecy in that period. still they have 3 months of period with additional formalities and they can seek help from central bank (reserve bank) of India.

It's most likely a great step taken by the gov but some people don't understand it and they are opposing this step..
They are most likely black money holders ..
But who want the country to be saved from corruption they are in favor of this step.

No, have you even seen the massive queues in front of ATMs and other exchanges? The ones are in favour of this have a lot of money, they just are making their employees withdraw/exchange money in behalf of the holder. But the common masses who havent done anything have to sleep and cook on the pavements near banks so that they can get into the queue right when the bank opens so as to exchange money. And many times the banks dont even have money and the withdrawal limit is not enough to support families. So, its actually a rip off. I live in India buddy, I know.

Yes we can always have different opinions on this matter (or any matter), I see effects of this action in the long term. Yes a person might lose his day for withdrawing cash from ATM or bank but in the long run it’s going to be a game changer move. Being a law student, I have seen some black money holders and their cases and I can surely state that ‘This decision is a hit in bulls eye’ as far as Indian economy is concerned.

[Ayers]

It's ridiculous, how could a country ban her legal currency without any advanced warnning?

...

The below links to a very negative article on India's ban of R500 and R1000 notes.  Briefly, it states that Modi is incompetent and dictatorial, and that India never gets complex things done right.  The chaos will get worse.

http://www.zerohedge.com/news/2016-11-16/stunning-scenes-panic-gold-price-skyrockets-india-after-currency-ban

We were in India in Nov. 2015, and saw (and heard) NOTHING among those we spoke with about Bitcoin, even in Mumbai.  So my *guess* would be that India is probably not responsible for today's BTC price spike.

Yes, they aren't, most of them don't even know how to find a way to buy Bitcoin.

i think many were not using those cash value anymore, hey faded away slowly until they banned them, it's a common use to band the biggest cash in other country as well or to limit them, because of counterfeit, they are problematic indeed

[Sithara007]

12 days have passed since the demonetization, and still the situation is chaotic. People are still queuing outside the banks and ATMs, and they are running out of cash in a matter of few hours. If the situation doesn't change, then the government may have to face the wrath of the people.

[calkob]

i would say that India will suffer for this for many years to come.  you cant just scrap a percentage of your money and no expect consequences.

[erikalui]

i would say that India will suffer for this for many years to come.  you cant just scrap a percentage of your money and no expect consequences.

It won't suffer but mainly those who wanted to escape tax would suffer now. Also, the banking institution was not ready for this change and half the banks are without any fiat cahs due to the RBI not supplying them with new notes that has created a chaos among the citizens. The situation now has worsened and all banks have put up their hands to help the citizens. Only those who use online wallets/debit cards are managing.

[Techie5879]

Well, the situation isnt getting any better. More than anything, its getting worse. This was a move against the common people, more like the government tried to kill the crocodile and dried the entire pond and killed a bunch of innocent fish instead.

[whizter]

i would say that India will suffer for this for many years to come.  you cant just scrap a percentage of your money and no expect consequences.

yes i am also agree with you, i think that they have not take the right decision, they must suffer for it for years, it will  effect their economy as india is already passing from financial crises as most of the people have no shelter they are sleeping on footpath.

[aso118]

Well, the situation isnt getting any better. More than anything, its getting worse. This was a move against the common people, more like the government tried to kill the crocodile and dried the entire pond and killed a bunch of innocent fish instead.

It was something unprecedented. Hopefully other countries learn lessons from India's mistake and don't repeat mistakes. It was a costly mistake, but at least the world can learn something from the whole experience.

[avikz]

That is a very good step taken by the government of India to crack the black market transaction and corruption. However, the honest citizens will not have to worry for this. Not even for bitcoin transactions.

If you selling something and earning bitcoin in return, then you will have to show it in your IT return form and nothing will happen to you. But if you hide this and the amount is big, then you have a reason to worry. However, government is planning to scrap the income tax totally and about to introduce banking transaction tax and GST. Good reform.

[densuj]

Widespread repression on black market money India could lead to a ban on gold imports as text by the Indian Bullion & Jewelers Association (IBJA) to be believed.

The professional organization has its 2,500 members a text message to them in the government's proposals on a possible fate of gold.

"We hear some areas of this possibility (ban on gold imports and the progress of the settlement date), as if nothing has officially yet," said Surendra Mehta, national secretary, IBJA. The government's struggle against black money and its members the possibility of such action on the ground. We have asked our members to support the government wholeheartedly.
The government goes after not only imports but also information held by the jewelers of the nation. "Already 600 jewelers receive advice from the tax authorities for their sale until November 8. We are aware that some trade import members only applied to the same selling old notes to disclose a substantial premium. Otherwise, if it leads all jewelers to collapse the old notes or declare on November 15, it would not necessarily consider a ban on imports.

As gold becomes less available to the Indian public, this may not be one thing for India's average demand Bitcoin. The price of Bitcoins in rupees has already exploded. As banning the move to gold imports to the surprise move India minister Narendra Modi was destined to ban the old 500 and 1000 rupees to the black market to undermine the stores of wealth.

Sandeep Goenka, the co-founder of Zebpay, a compliant Bitcoin portfolio provider application held an AMA 21 November It paid a glimpse of the Bitcoin market amid a changing landscape of India's money. Users asked the CEO a big difference between buying Bitcoins in India versus Western countries.

"Since we do not import bitcoins, which limits our offer to the Indians," says Goenka, "when price increases in India there are more buyers than sellers. Prices are higher than world prices due to an increase in local demand. "Most of the price is higher than the world price. Of the players were clearly the company's relationship to Bitcoin, and Mr. Goenka gave to explain much of the AMA what is Bitcoin. He explained that the moment to forbid any trend for nation-states Bitcoin.

[mkmdoc]

I hope every country should install these new technologies like block chain to control the black money, because every four years bitcoin will be halving so it will reduces to 1/4 of total transaction will be converted. I hope now Indian should carry smaller notes like 10, 50. I don't know exactly how those notes value. But to carry smaller notes it is very difficult may be.

[Techie5879]

I hope every country should install these new technologies like block chain to control the black money, because every four years bitcoin will be halving so it will reduces to 1/4 of total transaction will be converted. I hope now Indian should carry smaller notes like 10, 50. I don't know exactly how those notes value. But to carry smaller notes it is very difficult may be.

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

[amacar2]

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

Seems like you guys are having really hard situation there but this is transition phase and this ban may help Indian government to freeze really hell lot of black money. Regarding changes i think you guys can try online transfer or mobile payment wallet like oxygen wallet or something similar (have heard about them in television). However i think situation is even worst in remote areas where people have no access to banks or internet/mobile banking.

[bryant.coleman]

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

In that case, I strongly suspect that businessmen and other people are hoarding the lower denomination notes. Two days back, I had a chat with my relatives in India. They are saying that the ₹500 banknote is still in short supply, but there are enough ₹100 notes floating around. But still, it will be quite difficult, to give the change for a ₹2,000 note in ₹100 bills.

[Clement Kaliyar]

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

In that case, I strongly suspect that businessmen and other people are hoarding the lower denomination notes. Two days back, I had a chat with my relatives in India. They are saying that the ₹500 banknote is still in short supply, but there are enough ₹100 notes floating around. But still, it will be quite difficult, to give the change for a ₹2,000 note in ₹100 bills.

the situation is pathetic,all the ATMs are having shortage of notes at the moment and the ones that have notes would only dispense one 2000 rupee note per individual and most of the small shops would not accept the 2000 rupee note as they don't have enough balance to give the change .

[Snorek]

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

In that case, I strongly suspect that businessmen and other people are hoarding the lower denomination notes. Two days back, I had a chat with my relatives in India. They are saying that the ₹500 banknote is still in short supply, but there are enough ₹100 notes floating around. But still, it will be quite difficult, to give the change for a ₹2,000 note in ₹100 bills.

No wonder Indian people noticed idiocy of discontinuing higher denomination banknotes and turned to cryptocurrency instead.
They would rather buy Bitcoin at an inflated price than store a pile of hundred-rupee bills under their beds.

[Stedsm]

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

In that case, I strongly suspect that businessmen and other people are hoarding the lower denomination notes. Two days back, I had a chat with my relatives in India. They are saying that the ₹500 banknote is still in short supply, but there are enough ₹100 notes floating around. But still, it will be quite difficult, to give the change for a ₹2,000 note in ₹100 bills.

No wonder Indian people noticed idiocy of discontinuing higher denomination banknotes and turned to cryptocurrency instead.
They would rather buy Bitcoin at an inflated price than store a pile of hundred-rupee bills under their beds.

They are already buying Bitcoins at very high prices.
One of my friends lives there and he said that price in USA is much better compared to what is going on there in India.
They are selling it for 25-30% more the current price we see at preev.

[neverseven]

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

Crypto future is brighter and brighter This is happening worldwide