Other signs of increased interest include downloads of the smartphone app for bitcoin exchange Zebpay, which passed a threshold of 100,000 downloads.
“Queries for bitcoins have gone up by 20 percent to 30 percent in the past couple of days,” Zebpay’s CEO, Saurabh Agrawal, told the Hindustan Times.
As a result of the increased demand, the premium paid for rupee-denominated bitcoin has widened.
One bitcoin on the Indian exchange Unocoin is worth 55,405 rupees, or $817.97, at the time of writing. Dollar-denominated bitcoin currently costs around $709.
According to Charles Hayter, CEO and founder of Crypto Compare, the premium at the start of September was just $20, or around 3 percent.
“Bitcoin is a sanctuary in emerging markets where knee jerk policy reactions are commonplace – India’s move on high value bank notes is just the latest in a string of poorly communicated executed judgments,” he told CNBC via email.
“Bitcoin was trading at a $20 dollar premium in India at the beginning of September and now is trading at a $70-100 premium to the USD rate.”
One reason for the increased demand