Public opinion is hard to go against, India may become the next country to legalize Bitcoin

India may legalize Bitcoin in the near future as feedback from citizens and businesses appear to be in favor of regulating virtual currencies.

Indian government asks public about virtual currencies

According to an online comments section on the Indian government's website, the government received nearly 4,000 submissions in 10 days since May 21.

The poll asked: Should virtual currencies be banned, regulated or monitored? If virtual currencies are recommended to be regulated, what measures should be taken to protect consumers, promote development, and which regulatory body should regulate and monitor virtual currencies?

In addition, questions were asked about which self-regulatory mechanisms were effective and what measures should be taken to protect consumers in these cases.

Feedback from citizens and business organizations

Most of the comments received in the poll were brief, but they did represent a generally positive view of Bitcoin and virtual currencies in general, with some encouraging everyone to profit from it through taxation.

For example, one participant commented:

“Bitcoin, Blockchain is the future of finance, administration, governance, markets, IT etc. This technology has huge potential for a developing country like India. India should follow Japan’s lead and embrace this technology instead of adding hurdles. If India adds regulatory burden on this technology, it will not only limit the growth of this technology but will also isolate India from the benefits of this technology. Like the Internet, Bitcoin Blockchain technology will undoubtedly grow. We have a chance to embrace this technology or we will lag behind.

Another participant said government regulation would help reduce corruption and black market trading, as well as prove useful for India's overall economy.

Tarkesh Tambulkar wrote:

“Bitcoin is the future of India and it will increase tax revenue for the Indian government so it should be regulated.

Melika Rajarao added:

“Bitcoin regulation should improve India’s economic growth. Cryptocurrency can help digitize India and reduce poverty in the future. If the government takes steps to legalize and regulate Bitcoin, then Bitcoin will reduce corruption and black money.

Commodity Exchange of India Ltd. also commented:

“We propose that India accept Bitcoin as a legitimate financial instrument and regulate Bitcoin through a separate Virtual Currency Act. The adoption of virtual currencies should be encouraged in India as blockchain technology is now considered the future of electronic financial transactions. A strong push for legalization of virtual currencies has the potential to significantly reduce corruption, compress transaction costs and eliminate the involvement of third-party institutions.”

However, there are also some dissenting voices, some of whom call for a ban on Bitcoin.

Manish Rai wrote:

“We must ban all types of cryptocurrencies before it’s too late. Cryptocurrencies should be illegal as greedy Indians are investing their hard earned money in them and they will lose it very quickly.”

Overall, responses to the government survey seemed to favor “legalizing” Bitcoin through regulation, with other comments suggesting that Bitcoin could benefit India’s economic development and that it should align with international trends, such as Japan.

9 out of 10 new internet users will be Indians

It’s also important to consider India’s unique position and the types of citizens who make online comments. India is a developing country where much Internet activity is currently conducted in English, involving as many infrastructure barriers as language barriers. What’s more, many people only connect via mobile phones.

These questions are explored in a report on internet usage in India conducted by KPMG India and.

The report states:

“80% of Indian language internet users face some challenges using English keyboards. Around 55% of users find high internet cost and limited services as key barriers to their internet use.”

But there is also positive news. India is catching up with China in the number of new Internet users.

The report states:

“Internet adoption has snowballed in India over the past few years and today, the number of Hindi-language internet users in India has surpassed that of English-language users.”

The report predicts that digital payments, online government services and e-retail will see the fastest growth among Hindi-speaking users.

“Bitcoin is going mainstream in India. — Sunny Ray (@SunnyStartups) May 31, 2017”

Meanwhile, Bitcoin appears to be spreading rapidly in India, as evidenced by its transaction volume and increasing merchant adoption.