While RBI is trying to formulate regulations for the Bitcoin, it is time to start thinking of the benefits of India formally recognizing the Bitcoin as a currency of exchange.
According to coinmarketcap.com, the total market capitalization of Bitcoins today is about US$ 9.35 billion or roughly around Rs 50000 crores.
At present there are 181 official currencies of different countries of the world and following represents the amount of currency circulation in different monetary zones (Source: http://www.marketoracle.co.uk/Article11576.html)
| Country/Union | Currency Code | Amount (Billion US$) |
Percent of all Circulating Currency |
|---|---|---|---|
| European Union | EUR | 1035.2 | 24.30% |
| United States | USD | 850.7 | 19.97% |
| Japan | JPY | 762.4 | 17.90% |
| China | CNY | 492.3 | 11.56% |
| India | INR | 140.3 | 3.29% |
| Russia | RUR | 110.8 | 2.60% |
| United Kingdom | GBP | 87.5 | 2.05% |
| Canada | CAD | 43.8 | 1.03% |
| Switzerland | CHF | 40.3 | 0.95% |
| Poland | PLN | 37.7 | 0.89% |
| Brazil | BRL | 37.3 | 0.88% |
| Mexico | MXN | 34.3 | 0.81% |
| Australia | AUD | 32.4 | 0.76% |
| Others (89) | – | 554.9 | 13.03% |
It may be observed that the total value of Bitcoins amounting to less than US $ 10 billion is around 0.25% of the total currency circulation. Out of this what may be in circulation is much less and what may come for circulation within India today and even in future is very negligible.
Before Indian economists jump at the threat of Bitcoins to the Indian Currency system they need to take a look at this data.
Naavi
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