With a country strapped for cash, electronic payments are gaining ground as people continue to struggle.
Taking advantage of the situation and to promote digital banking was Indian Finance Minister Arun Jaitley. In November, he stated that banks should start to promote digital banking in ‘mission mode’ to limit the use of physical currency. The fact that Indian bitcoin buying had reached $985 at the end of November was another driving force of moving away from fiat by adopting the digital currency to a country that has over one billion mobile phone users and a largely young population.
Sarbananda Sonowal, the Indian chief minister of Assam recently followed suit by launching a digital banking campaign to instil in the local population that digital banking is the way forward.
In light of this, the Indian Union HRD Ministry launched a digital currency campaign to increase youth awareness of digital currencies such as bitcoin in December. By doing so it was hoped that they would see bitcoin as a cash alternative thereby helping to establish the push toward digital banking.
To add to the country’s woes, Indian bitcoin exchange Coinsecure came under a DDoS attack at the end of last year, which saw operational delays on its website, mobile application and other API-enabled platforms.
At the news of India’s demonetization, the digital currency bitcoin reached new highs in the country with demand pushing the price of one bitcoin to $881 in November. With a surge of bitcoin adopters in India it appeared that a push toward digital banking was the way forward as more than a billion people faced government-imposed limits on ATM and bank withdrawals.
There are campaigns pushing awareness of digital banking among youth in India.
Of course, with a country that reduced around 90 percent of its cash in circulation at the time of the demonetization, it’s not going to be an easy road for the country as it attempts to push digital banking.
Featured image from Shutterstock.
But things are changing.
And yet, despite these concerted efforts in various parts of the nation to get digital banking off the ground, the country still has many obstacles in its path.
It may be a small step toward better things, but it’s a step nonetheless.
India’s central bank, the Reserve Bank of India, announced that the blockchain technology had “matured enough” to be the core technology to support the digitization of India’s fiat currency, the rupee.
Since the announcement of the banning of India’s two biggest banknotes last November by Indian Prime Minister Narendra Modi, the country has pushed efforts toward digital banking. Yet despite the drive to make this happen, hurdles still face the country to make it a reality.
That, however, doesn’t seem to stop extortionists from still trying to get bitcoin ransoms in the first place. Consequently, the people of India are less likely to trust the digital currency and are more likely to shy away from the prospect of digital banking.
Back in December it was reported that India Today, a well-known Indian news outlet, had published an investigative report on bitcoin. It’s thought that its objective was to tarnish the reputation of the currency. However, while the report states that bitcoin is ‘notoriously used by money launderers and criminals,’ it fails to add that fiat currency is used by criminals too.
This, however, is not the only problem that India is experiencing.
In a recent report from the Times of India, India’s second largest bank, the Bank of Baroda, has attempted to make the Indian village of Naya Gav cashless for the past two months. However, even though training materials were provided in addition to running a campaign, the bank found that illiteracy and an unyielding attitude from residents was slowing down adoption.
Nevertheless, while bitcoin exchanges and websites appear to be obvious targets for DDoS extortionists, Kraken CEO Jesse Powell told CCN back in February that ‘most bitcoin companies aren’t profitable and we’re therefore not great targets.’
However, such a report from a prominent news outlet will only further hinder India’s goal toward digital banking.
Analysis: What 2019 Could Bring for Bitcoin
Trading in altcoins was a big part of what made Bitcoin price spike towards the end of 2017. A section of the crypto space argues that while altcoins helped Bitcoin’s market cap swell, they also bro
Bitcoin Cash Going Down as Stellar Warms up
Bitcoin Cash’s market cap has been cut in half since the Nov. 15 hardfork which birthed the Bitcoin ABC and Bitcoin SV chains. Now at a mere $3.5 bln and a unit price of ~$201 as at the time of writ
300k User Data from Chinese Auto Finance Platform Sold For One Bitcoin on Dark Web
It is revealed that 300,000 pieces of user data from a Chinese auto finance platform Jiurong were compromised and priced at one bitcoin on the dark web.
According to the leaked data posted, persona
Heyday of Bitcoin Mining Rigs Business at China’s Huaqiangbei is Over Amid Crypto Market Carnage
Bitcoin price slumped to a 13-month low of about $4,300 on Wednesday, making mining the world’s leading digital currency an unprofitable business. A lot of mall miners, mining rigs dealers and minin
Dialogue with Bitcoin Evangelist in Latin America: RSK Labs CEO Diego on Crypto Industry
Diego Gutierrez is the CEO at Koibanx and president of Bitcoin Argentina NGO. In addition, Diego also serves as the CEO of Rootstock/RSK Labs, a smart contract platform built on top of bitcoin.
China’s Bitcoin Billionaire Zhao Dong : Bitcoin Price to Hit $50,000 in Three Years—Now Is the Time to Buy the Dip
Despite Bitcoin’s latest crash and a real chance that its price will go much lower, Zhao Dong, prominent Chinese OTC trader and founder of Dfund, remains bullish on the the world’s biggest cryptoc
Bitcoin Miners Sold by Kilo in China Amid Cryptocurrency Crash
The leading cryptocurrency bitcoin once fell below $4,300 on the afternoon of November 20 – down more than 17% on a 24-hour basis and hitting a 13-month low since October 2017. Great losses are seen
Xiao Lei: 3 Main Reasons of the “Unreasonable” Bitcoin Price Crash
Cryptocurrency markets experienced a havoc in the past few days. Bitcoin, the uncrowned king in the crypto world, has fell as much as 30% over the past two weeks, while other major tokens are all suff