Pressure from Reserve Bank of India Drives Some Bitcoin Businesses Under

Crummy news on the Bitcoin beat out of India, via NDTV Gadgets:

A number of Bitcoin operators in India have begun suspending their business following RBI's warning against use of such virtual currencies due to potential money laundering and cyber-security risks.

While RBI is yet to come out with a clear regulatory framework for Bitcoins, which have been gaining currency across the world over the past few months, it has issued an advisory cautioning general public against use of Bitcoins and other virtual currencies - notably, no ban.

Within days of this advisory issued on December 24, a number of entities offering Bitcoin services have suspended their operations, temporarily or indefinitely, while websites of a few others have gone down.

As I wrote back in May, while aspects of the Bitcoin protocol make its destruction by government or central banks unlikely, their pressure can sure make it more difficult for people to conduct Bitcoin related businesses.

Comments

[OldMexican]

As I wrote back in May, while aspects of the Bitcoin protocol make its destruction by government or central banks unlikely, their pressure can sure make it more difficult for people to conduct Bitcoin related businesses

An "I told you so" is pertinent here. Bitcoin is still too dependent on electronic exchange systems and thus too vulnerable to whatever the central banks (and governments) decide.

[Knarf Yenrab (prev. An0nB0t)]

States will always use coercive measures to back their own power. Nothing unpredictable about this, and it's just a salvo. The web is still in its infancy, and deflationary digital currencies are inevitable in a world of unstable political funny money.

[brec]

...Bitcoins, which have been gaining currency across the world... [emphasis added]

Way to go, NDTV Gadgets!

[Cytotoxic]

Bitcoin is still too dependent on electronic exchange systems and thus too vulnerable to whatever the central banks (and governments) decide.

1) That doesn't even make sense.

2) There are still BTC services operating in India.

[OldMexican]

Re: Cytotoxic,

That doesn't even make sense.

Take your Thorazine, for crying out loud. Didn't you read the goddamned article? The evidence is right in front of your nose and yet you still want to believe something else?

[Cytotoxic]

Evidence of what? Nothing in the column corroborate your stupid statement. If what you said were remotely true, BitTorrent wouldn't exist. You're wrong I'm right.

[R C Dean]

Given their reaction to BTC, you'd have to conclude that governments/central banks would like to outlaw cash, period.

[OldMexican]

Re: R C Dean,

Given their reaction to BTC, you'd have to conclude that governments/central banks would like to outlaw cash, period.

They're way ahead of you.

[RishJoMo]

I think that is going to work out well.

http://www.BeinAnon.tk

[4thaugust1932]

To alleviate poverty, each state in India should have separate currency.

[Bogdana]

Using Bitcoin is definitely becoming risky. There are more reliable financial facilities such as no credit check payday loans online. It would be much safer.