Prime Minister Narendra Modi’s decision to combat the underground economy is a blessing in disguise for companies working in the cashless space, which includes mobile wallets, card companies and even bitcoin.
Bitcoin, the eight-year old virtual currency, has been gaining decent traction in India over the past few months. However, the process of demonetization has sparked new interest in cashless mechanisms. (See also, India Discontinues 500 and 1000 Rupee Currency Notes)
While talking to Investopedia, Sandeep Geonka, co-founder of Zebpay, said that his bitcoin exchange is now adding about 50,000 new users per month. He said, “We hail the unprecedented move by PM Modi’s vision for a cash less and corruption free India. More people have started looking at bitcoins and interest has surged. We are working hard so that bitcoins and this technology can help fulfill the government’s dream.”
The price of bitcoin is currently hovering around $712 (Coindesk), which converts to approximately INR 47,725. However, due to the rise in demand, the virtual currency is currently trading at INR 55,735 in India. “We are seeing an increased demand for bitcoin and India clearly has shortage of supply, making the demand and lack of liquidity push up