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Bitcoin The Almighty Buck

India Vows To Eliminate Use of Cryptocurrencies in the Country (hindustantimes.com) 68

India will move to stamp out use of cryptocurrencies, which it considers illegal, country's Finance Minister Arun Jaitley said on Thursday, launching a no-holds-barred attack on virtual currencies such as Bitcoin. From a report: Governments around the world are grappling with how to regulate cryptocurrency trading, and policymakers are expected to discuss the matter at a G20 summit in Argentina in March. "The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system," Jaitley told parliament in his annual budget speech. However, the minister said, the government would explore use of block chain technology proactively to speed the move toward a digital economy. Jaitley's announcement could trigger "panic selling" in cryptocurrencies in India, said Amit Maheshwari, partner at tax consultants Ashok Maheshwary & Associates LLP.
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India Vows To Eliminate Use of Cryptocurrencies in the Country

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  • by squiggleslash ( 241428 ) on Thursday February 01, 2018 @10:22AM (#56046925) Homepage Journal
    This is good news for Bitcoin!
    • Re:Obsnark (Score:4, Informative)

      by supremebob ( 574732 ) <themejunky@@@geocities...com> on Thursday February 01, 2018 @10:30AM (#56046969) Journal

      You didn't hear? Bitcoin isn't considered to be a "cryptocurrency" anymore. Now it's considered to be a "store of value", like Gold or Silver.

      That might have had something to do with the fact that it now sucks to use as a currency, now that the transaction fees are insanely high and it takes forever to confirm a purchase. Even the criminal underworld has given up on it, and uses different cryptocurrency for things like drug buys and money laundering.

      • You did not pay attention.
        The pool of unconfirmed transactions is quite low and fees are lower because of that.
      • Re: (Score:3, Interesting)

        Fees are pretty low right now, and tests with Lightning Network are looking pretty good too. LN allows for near instantaneous payments for almost zero fee.

        • by DarkOx ( 621550 )

          Many would argue a ~2% CC card fee is near 0 too. The entire point of Btc was to eliminate middle men. Turns out the only way to make Btc workable is a middle man. I cal that FAILURE!

  • by thaylin ( 555395 ) on Thursday February 01, 2018 @10:27AM (#56046959)

    They dont consider it legal tender, but are not looking to emeleate its use, just stamp out illegal use like other countries.

    https://yourstory.com/2018/02/... [yourstory.com]

  • by Anonymous Coward

    I see... an Bitcoin article. Prediction of comments:

    Mumble mumble BUBBLE roobarb roobarb TULIPS roobarb mumble CRASH

  • Folks, time to short BitCoin. Please short this thing to make $$.

  • India also vows... (Score:4, Interesting)

    by GeekWithAKnife ( 2717871 ) on Thursday February 01, 2018 @10:39AM (#56047015)

    to end porn...drug use...and well uhm. Stuff.

    Good thing they had picked a worthy pursuit we can all get behind! Seems ending poverty is nothing anyone (with money) cares about.

    Bitcoin settlements can be delivered by carrier pigeon, more code or encoded in text/email. -Stopping bitcoin is harder than stopping porn.

    I refer to The Simpsons -> http://i0.kym-cdn.com/photos/i... [kym-cdn.com] (Old man yells at Cloud)

    Before anyone can stop bitcoin they'll need to at first understand what bitcoin is. Considering some of these entrenched knee-jerk politicians are still coming to grips with DNS & VPN I'd worry in about 20 years...

    BTW, BTC will likely touch sub $3k - good time to buy. -You're welcome!
  • by supernova87a ( 532540 ) <kepler1@COBOLhotmail.com minus language> on Thursday February 01, 2018 @11:03AM (#56047159)
    In related news, the Government of India just announced that anyone with Bitcoins must bring them in to be exchanged for "miniBitcoins" worth 1/10 the value or else they will expire next Tuesday.
  • by nerdonamotorcycle ( 710980 ) on Thursday February 01, 2018 @12:42PM (#56047777)
    from 1933 to 1975, when they got the US off the gold standard and onto fiat currency. Whether cryptocurrencies are viable long-term, I couldn't tell you, but governments HATE not having a monopoly on stores of value.
    • from 1933 to 1975, when they got the US off the gold standard and onto fiat currency. Whether cryptocurrencies are viable long-term, I couldn't tell you, but governments HATE not having a monopoly on stores of value.

      Actually, it was used to increase the money supply as the government bought US. gold and increased the price about 75% resulting in foreign holdersof gold selling it to the US. This increase in gold holdings resulted in an increase in the money supply, inflation and an increse in output. It was not illegal to own good as jewlery and collector coins was still ok. The old habit of buying gold chains as a way to hold gold was still possible.

      • by dj245 ( 732906 )

        from 1933 to 1975, when they got the US off the gold standard and onto fiat currency. Whether cryptocurrencies are viable long-term, I couldn't tell you, but governments HATE not having a monopoly on stores of value.

        The old habit of buying gold chains as a way to hold gold was still possible.

        Not only possible, but stylish [wikipedia.org]

    • by spth ( 5126797 )

      And in India, which this article is about, it was illegal to own gold from 1963 to 1990. There were some exception for jewelry of up to 14 karat.

      Even more closer to the topic of the article, since 2016 Indian politicians have been making statements about making it illegal to own too much gold again. At various times, the introduction of upper limits of 250, 500 or 1000g per person were announced.

      Philipp

  • Good luck with that.

  • And judging by this article the Indian Gov is quite poor. If your not online learning everyday your really falling behind your classmates.
  • It's illegal uses are being cracked down on, not being banned itself. It's all right there in the text. All the headlines say "All cryptocurrencies to be banned"... Which i'm guessing was done to attract readers.
  • by Koreantoast ( 527520 ) on Thursday February 01, 2018 @02:21PM (#56048721)

    I see two things motivating the government: capital flight and undermining redenomination. Regarding capital flight: particularly in developing countries, governments take great steps to restrict the amount of money people take out of the country. The idea is that if you can keep money in country, it'll go to growing the local economy versus investments overseas. Traditionally, these controls have been imposed through government bank regulations. Bitcoin and other "cryptocurrencies" give people an alternative medium to move money and bypass government controls which I'm sure is bothering the Modi government.

    The other thing to remember is that India just went through redenomination, where they effectively removed a large number of bills out of circulation (about 80% of all cash value). This was done to shrink the shadow economy, basically the cash-driven underground economy, so that the government can better monitor (and tax) sales, income, etc. It also pushes more money into more traceable electronic transactions, making it harder for corruption payments and criminal funds transfers. Cryptocurrencies however provide another means to move value that the Indian government doesn't have the ability to track (yet), thus the initial reaction to shut it down.

  • Let's back up 100 years or so. India decides electricity is too dangerous and powerful and expensive and just a bad idea. They ban electricity. Great, nobody getting electrocuted and they save money on infrastructure. Yay! Fast forward 100 years and their country would be a joke, left behind by all other countries and they'd basically be bankrupt for not adopting the latest and greatest in superior technology. Let's imagine the same with computers. Computers are capable of letting people commit crimes so l
  • Amazing how India keeps coming with all sorts of grandiose public statements about all sorts of things, while consistently ignoring the plight of the more than 600 million Indian citizens who lack such basic services as sanitation, running water and electricity. Talk about having a huge chip in one's shoulder.

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