Though Bitcoin prices fell this week as several technical glitches caught major Bitcoin exchanges like Mt. Gox and Bitstamp, there is still some hope says Aaron Koenig. Earlier this week two biggest exchanges fought to recover from an attack that has left them with limited operations and exposed a flaw in the way they send Bitcoins, scared traders.
According to Aaron Koenig India is a perfect place for Bitcoin with its many talented IT and media experts. He is of the view that it’s very normal for Indians to work for companies in the U.S. or Europe, but before Bitcoin, payments have been difficult and expensive. He says that he has worked a lot with Indian animators and software developers and always pays them in Bitcoin, because it’s so much faster and cheaper.
ForexMinute has reported that the Indian government does not consider Bitcoin a viable option or a legal tender and in fact, its central bank has issued warning to Bitcoin users. Also, Enforcement Directorate has raided several Bitcoin companies for their non-compliance of the law of the land. India gets a lot of remittance and if Bitcoin is allowed, it will be beneficial for customers.
Technology Surplus and Trained Human Resource in India
Earlier, in a Bitcoin convention held in the IT hub of India, Bangalore, it was agreed upon topic that in India, Bitcoin can help solve the problems of the unbanked rural population. It is also a potential remittance tool. Then the agencies had promised to work with lawyers to draft possible policies that could present to the RBI and other government agencies.
However, the results are still awaited. It was discussed that India needed a local digital currency to help local businesses and in consequence laxmicoin started. Now, Aaron Koenig, organizer of Bitcoin Exchange Berlin, and a member of Global Bitcoin Alliance says that the kind of technical people India has, it can give impetus to Bitcoin economy in the country.
Need of the Hour
In his opinion India can well be the fertile ground on which Bitcoin can flourish, thanks to its tech-savvy citizens and the millions of poor that are excluded from the financial system. According to him the poor have mobile phones and that’s all it takes to be part of the system.
Moreover, as Bitcoin is fast, cheap and secure, much safer than, for instance, credit cards, which suffer a lot of fraud, it should be promoted. Nevertheless, most of these 5 billion people without bank accounts do have mobile phones, which is all you need to send and receive money. M-Pesa in Kenya has proved that.
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