Correctly said! It is not a legal tender in India means you can not use bitcoin to pay for services and goods you purchase from an Indian citizen. But they haven't ban it either because they simply don't have the infrastructure to do so. Even if Indian government bans bitcoin, people will still use it but the ultimate looser will be the government because they will loose out on tax part.
On the other hand, if the government legalize it, it will have to be considered as a legal tender which may bring significant outrage from the banks who are supporting the development of India through funding.
So the government has taken a midway. They have kept the window open for the willing taxpayers. This way they will not loose a significant amount on taxes as well as pacify the banks. But that's a temporary arrangement. The government is still waiting for the final report and recommendations from the committee they have formed to decide the impact of Cryptocurrency on India's economy.
Topic: India and Bitcoins - page 5. (Read 694 times)
In India, Bitcoin is not a legal tender. But it is not explicitly termed as illegal. What is the reason for such a stand by Government? what are its implications?
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