Category Archive: India

Bitcoin can stabilise volatile market in India

(TimesOfIndia) At a time when the country has suffered devaluation of rupee against
dollar, inflation and fuel price volatility in exchange market, two
students of Fellow Programme in Management (FPM) at Indian Institute of
Management, Indore (IIM-I) have rekindled hopes to address the problems
through introduction of ‘Bit Coin’ currency system.

Bitcoin is
a crypto currency which currently has market capitalisation of $8.1
billion. The recognition is mainly because of its introduction during
financial crisis, when trust on government and policy makers was low. It
is an alternative to card networks and money transfer system.

Khadija Vakeel and Nitya Saxena of IIM-I in their study found out that
at a time, when the country is struggling to achieve a respectable
position on matters of financial inclusion, Bit Coin can be a game

Bitcoin can also lead to a new industry and challenge
for IT youths and can address the problem of brain drain. While
Singapore is pro bit coin, China stands against it. India is yet to take
a side. Users having Bit Coin can enter into virtual goods and services
exchange. The study states that inflation is simply a rise in prices
over a period of time, which is generally the result of the devaluation
of currency.

This is a function of supply and demand. Given the
fact that the supply of bit coins is fixed at a certain amount, unlike
fiat money, the only way for inflation to get out of control is for
demand to disappear.

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Reserve Bank of India closely examining digital currencies

(The Hindu) A number of countries around the world are taking a close look at the
use of bitcoin and other digital currencies, and India is no exception.
It is being reported that the country’s government on Tuesday said that
the Reserve Bank of India (commonly known as RBI) is taking a close
look at both the legal and security elements of digital currencies.

“The RBI is presently examining the issues associated with the usage,
holding and trading of virtual currencies, including bitcoins, under
the extant legal and regulatory framework of the country, including
foreign exchange and payment systems laws and regulations,” said P.
Chidambaram, Finance Minister.

Reserve Bank India Seal

This isn’t the RBI’s first run-in with digital currencies, though.
Late last year (Christmas Eve, in fact), it was reported that the RBI issued a public advisory on bitcoin, warning citizens if its potential pitfalls.
“No regulatory approvals, registration or authorization has been
obtained by entities concerned for carrying on such activities. As such,
they may pose several risks to their users,” said Chidambaram. 

Open your free digital wallet here to store your cryptocurrencies in a safe place.