Effect of Bitcoins on floating currency

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

Related Articles:

The Economic Case for Bitcoin

Mapping Bitcoin Adoption: A Global Perspective In 11 Graphs

Distribution of Bitcoin transactions by country/exchange

Bitcoin Currency Surpasses 20 National Currencies In Total Value

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About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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