Increase in the Relevance of Bitcoin Exchanges with Demonetisation

Increase in the Relevance of Bitcoin Exchanges with Demonetisation

The demonetization by Central Government in India has given rise to a new tide that may increase the relevance of Bitcoin exchanges in the society. Th

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The demonetization by Central Government in India has given rise to a new tide that may increase the relevance of Bitcoin exchanges in the society. The cryptocurrency as well as payment system was denied by the RBI in the form of legal currency. There is much increase in the faith that the RBI may very soon accept this as legal currency. This is because of the new strategy of the Government to make transactions more to the digital end. This has led to much increase with the price of the cryptocurrency and is quoting at the premium rate in India rather than the international markets. A Bitcoin unit is costing 769 dollars that is about 51000 rupees, which is 52 weeker high. In the case of Zebpay, there is largest exchange in India and can be quoting between 56k to 57k, which is a premium of about 10 percentage.

Sandeep Goenka who is the co-founder of the company Zebpay says that Bitcoins are considered as the currency that is legal in most of the Western countries. The new strategy that the Government has adopted and encouraging more on digital money may result in giving the Bitcoins regulatory status in India too. Sandeep says that they are going to approach regulatory for the same.

Crypto currencies and Bitcoin are found to be accepted globally by various countries like US, EU, Australia, Singapore and Japan. Bitcoins is accepted as the one which can be considered even for financial services. There are also countries that have exempted this from VAT under the concern that it is the finest transaction over coins, bank notes and the currencies other ways. There are also so many vendors who accept the Bitcoins for selling of goods.

RBI has not yet accepted this as the crypto coins. These crypto currencies are not there under Foreign Exchange Management act as central bank is not ready for giving it currency status. The RBI sticks to the stand because the virtual currencies are available in the digital media which can lead to losses when they are hacked, there is loss of the password and also whether it can compromise access credentials and malware attack is required.

In India the trading exchanges with Bitcoin is possible for recharging the mobile plans or with the purchase of gift vouchers. Goenka thinks that bitcoin has got the potential for making huge change in the financial infrastructure of India. It is not required to have debit or credit cards anymore but can make use of Bitcoins directly. There are so many experts who have suggested to include Bitcoin in the legal structure. This may come under category of goods which can come under Sale related with Goods Act. Law firm has really quoted past the observation of the court for supporting this opinion.

As the Bitcoins are digital they are stored in the digital media, they can be lost if the credentials are compromised and there is no framework established for considering the customer problems or the disputes.

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