With the implementation of the demonetisation policy by the Narendra Modi government and as the paper currencies of higher denomination gets banned in the country, alternate medium of transactions had been in high demand. And with most people preferring e-transaction, due to lack of enough currency notes in the market, one of the largest and oldest cryptocurrency, Bitcoin, had been trading huge in the country.
According to a Business Standard report, following the central government’s decision to put a ban on notes, the Bitcoin prices in the country had seen a rise in the value till 22-25 per cent. And while the international prices of the bitcoin, in Indian rupee was Rs 46,942, the bitcoin prices at leading Bitcoin trading exchanges Unocoin and Zebpay rose to Rs 52,000 on a day following the implementation of the demonetisation policy.
A similar rise in the demand of the cryptocurrency was witnessed in China, when the Chinese currency weakened to an eight year low and dollar value got strengthened and thereby taking the price of the Bitcoins, in China, at about a 25 percent high.
To curb the rise in the circulation of blackmoney in the country, Prime Minister Narendra Modi, on November 8, had initiated the demonetisation policy, following which there had been a ban on currency notes of the denomination Rs 500 and Rs 1,000. With the implementation of the new anti-graft policy there had been a chaotic situation among the citizen of the country, as cash-starved people kept standing in never-ending queues outside banks and ATMS to collect usable cash for their daily needs.