Almost immediately after the announcement of Indian Prime Minister Narendra Modi to demonetize 500 and 1000 notes in rupees on November 9, began to surge from the demand of Bitcoin in the main Indian exchanges. However, experts noted that there is a premium on the Bitcoin price existed before demonetization.
At present, investors and buyers at large Indian Bitcoin exchanges and trading platforms, including parts Cure, Unocoin and Bitcoins are traded Bitcoin at around INR 61,223, or $ 900, nearly 17 percent Above the average Bitcoin price on most Bitcoin world exchanges.
Сontrols in capital and demonetization
Strict control of India’s capital flows and financial regulations forbid individuals and businesses to move money out of the country. Thus, arbitration has always existed on the Indian market Bitcoin.
However, a surprise announcement by Prime Minister Modi in early November demonetizing two batches of banknotes used as part of an ongoing initiative for the crackdown on corruption and illegal liquidity reserves, Bitcoin’s request led the ” India to reach summits of several months, resulting in the price of Bitcoin in India to break $ 900 margin.
On November 15, Bitcoin expert and dealer Tuur Demeester revealed that Bitcoin was traded at $ 806, 13 percent above the world average.
On November 18, just three days after the announcement of Demeester is the price of Bitcoin on the Indian market has jumped to $ 100, to the dismay of Indian residents and citizens to avoid capital controls and rapid economic change .
Demonetization of 500 and 1000 rupee notes also triggered national panic, as individuals rushed to ATMs and banks in an attempt to get money for daily use. People began to align to use ATMs for more than 10 hours.
Indian media also reported that 33 people died of exhausted waiting for banknotes in ATMs safely after being forced to wait in line for 24 hours to withdraw money.
Lakshmi Narayana, 75, collapsed and waiting in a queue for more than two hours outside a bank in Secunderabad, Telangana was declared dead, “reported the Indian Express.
Although it is difficult to speculate on the development of Bitcoin in the Indian market over the next few weeks, it is important to remember that the Bitcoin premium in India existed before demonetization and will continue to exist if the government Maintains strict capital controls.
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