Bitcoin, a payment network and an alternative form of currency, is looking at expanding in India.
The monetary mechanism, which is not controlled by central banks anywhere in the world, based on open source and helps in day-to-day transactions such as paying bills or shopping, is looking to grow its network to 600 individuals from 330 currently.
These can be individuals, small merchants or retailers.
“There are around one lakh people who are in this network at present,” Sunny Ray, Director of Business Development at Buttercoin, a venture backed by Google, told
Individuals involved in the Bitcoin movement are called miners and other companies such as Coinmonk Ventures, Unobit Solutions and VentureNext are trying to build the ecosystem that will make Bitcoin an acceptable currency, similar to gold, silver or rupee.
“The big opportunities for Bitcoin are in the $70-billion overseas remittances segment and financial inclusion,” added Vikram Nikkam, head of Unobit.
While 12,000 companies globally are a part of the Bitcoin network, no venture has signed up in India. “All this will change once people realise that Bitcoin has all the attributes of gold, which offers protection against economic crisis, long-term prospects and scarcity,” said Ray.
12 million coins According to data, there will be a total of 12 million Bitcoins available for trading and no more currencies will be issued, according to companies involved in this initiative. At present the value of 1 Bitcoin equals to $1,000, according to data.
Industry watchers point to the growing acceptance of Bitcoin in countries such as China, the US, Canada and Japan. China Telecom, Baidu and others have recently started accepting Bitcoin payments and the Government has put out advertisements to create awareness around this payment mechanism.
Recently, businessmen such as Bill Gates and Richard Branson have thrown their weight behind the Bitcoin.
However, banking authorities have remained tight lipped and Indian banking authority, the RBI is waiting and watching and do not have an official policy on regulating it.