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India decides to encourage development of digital currency

Indian Finance Minister Arun Jaitley claimed this week that banks must enter into the digital age and "carry out their mission."

Newspapers around the world have already written about how large denominations are exchanged here. The Minister of Finance believes that the government needs to gradually move away from the idea of cash.

Indian Finance Minister encourages the adoption of the digital currencies.

In early November, the Prime Minister of India, Narendra Modi shook the country by the fact of suspending rupees' large denominations banknotes. Now, after a meeting with representatives of the banking service, Jaitley said that the Committee on the country's currency transfer to digital form will be created. Finance Minister said that the country has "lakh" (100,000) POS terminals, and he believes this development is insufficient, expecting greater distribution of such devices.

"Some of our banks have already achieved great success, despite the fact that some were talking about the Indians not ready for this kind of activity," said Jaitley. "I think that political life in India is changing right before our eyes, at the same time as people change and their habits."

Non-cash payments are booming in India

Jaitley continued his explanation that customers of banks are already in full use of cashless payments and "have a ready infrastructure for them," he said. Finance Minister also said that there is a "crore" (10 million) of cards in circulation, and changes in how people use money are already happening.

"One of the principal agreements reached during the meeting was that in order to banking become digital, it is necessary to turn to the banking system itself and prepare it to adopt the task of transition to digital form," explained the Minister of Finance.

To support the initiative of the Prime Minister for the transition to non-cash payments, in the state of Goa in western India said they wanted to be first. Indian Defence Minister, Manohar Parrikar said that Goa is well on its way to the transition to a fully non-cash payments. "Goa will soon become the first state where the calculations went completely cashless, as the Prime Minister wants it," Parrikar said this week.

Non-cash payments contribute to the adoption of bitcoin

Ever since Modi began suspending of banknotes of large denominations, acceptance of Bitcoins in India started to grow. The number of Indian users is growing like an avalanche. We add that we also noticed: cryptocurrency's price on Indian stock exchanges is on average by 25-30% USD more than on the international stock exchanges.

This week one cryptocurrency trader described how he uses this difference in prices to make a profit due to the Indian demand for bitcoin. Trader described arbitrage opportunities in general, adding that traders from the United States, too, can make a profit in this way.

"Around 2:00 on November 24, 2016 bitcoin price on three leading Indian digital currency exchanges reached 67735.33 of rupees, accounting for 984.92 USD», explains Wesley."At the same time on three major exchanges in the United States the price was 735.92 USD, which is 249 USD, or 33.8% less than the price of bitcoin in India."

In his post, the trader told two ways by which readers can also get 38% of profit on their BTC. Bitcoin rises in price in India, and it seems that the government's efforts to seize large denomination of banknotes have led to increased demand for cryptocurrency. If the growth of Bitcoin adoption in India will continue, it can mean a lot to the digital currency.

Source: coinspot

  • December 5, 2016 5:27 PM MSK