The Indian Government is Planning to Legally Recognize Bitcoin

By Daniel Zo Bitcoin, India

During the last couple of months, we’ve seen numerous governments open up to the idea of digital currency, which is absolutely great news for adoption throughout the world. Not long ago, reports stating that the Indian government plans to legally recognize Bitcoin came in.

With this in mind, it seems like a committee was constituted by the Reserve Bank, and put in charge to study digital currency, and decide whether bitcoin is fit to be recognized as an official, legal currency in the country. The recommendations from the committee will be given anywhere between the 15th to the 20th of May. Afterwards, the Government will get to decide whether the plans will proceed.

India

India has often been referred to as one of the countries which will likely have a powerful impact on Bitcoin’s future, and this is quite understandable since we’re talking about a country where the population is massively unbanked, and where cash rules every person’s daily life. Not only this, but the Indian Central Bank itself has managed to attract quite a lot of negative media attention, after it was unable to keep up with the cash demand, and issue more banknotes. In return, this has led to numerous dry banks, but also ATMs, thus affecting millions of people throughout the country.

With a population of over 1.2 billion souls, chances are that a large percentage will at least consider, if not switch to bitcoin completely. The legal recognition of the coin will not only attract a surge in popularity of the digital currency throughout the country, but will also likely encourage more and more businesses to accept the coin as a method of payment. With an economy whose cash is drying out, and where banks cannot guarantee filling the population’s demand for banknotes, we can see why Bitcoin will turn out to have a massive influence in India.

In the Hindu report, it was stated that the government is planning to give Bitcoin a legal status, which isn’t currently regulated in the country. This doesn’t only mean a formal recognition of the digital currency, but also that all activities revolving or based on Bitcoin will also be monitored by the government, which will apply taxes as well. This is quite understandable, yet some are afraid that it will somehow reduce the anonymity provided by Bitcoin. While this won’t exactly be the case, transactions will be monitored more closely, to help avoid tax evasion, money laundering and funding of illegal activities, yet this form of surveillance will likely address companies that deal with the digital currency, rather than the common folk.

Based on everything that has been outlined so far, what are your thoughts on Bitcoin’s formal legalization in India? Let us know your thoughts in the comment section below.