Quote from: infonetenergy on December 27, 2014, 10:18:49 AM

We just hit a landmark moment with respect to bitcoin in India. Fast forward to [22:30] to hear Reserve Bank of India's Governer, Mr. Rajan, speak eloquently and articulate his position on bitcoin:

http://www.ndtv.com/video/player/india-forecasts/indian-stock-markets-not-in-a-bubble-raghuram-rajan-to-ndtv-s-prannoy-roy/349983

interviewer: anybody here plan to go into ecommerce?
smart student: My question is not exactly related to ecommerce, but to a more important topic of bitcoins.
governer: nothing is more important than ecommerce.
interviewer: oh no, bitcoin is fascinating, lets tackle that.
smart student: reading your book 'fault lines', it comes out as you are somebody who is not pro government intervention. Being from the Chicago School of Thought, you propagate more free markets. So I want to know, bitcoin has specifically very good advantages for a developing nation. So, I want to know, what is your view as a regulator on free banking, and having more of equitable currencies floating in the market?
governer: See, I think were still watching the evolution of these kinds of currencies, one of the problems that we envisaged with bitcoin, one of course was security issues and youve seen that theyre not as secure as people thought they were and there have been stolen bitcoins and so on. But the second issue was the fluctuation in value. For money, you require something called a stable store of value and something that fluctuates so much is less effective in use as money. There are some lessons to be learned from the technologies that bitcoin has employed, some of them are useful, some of them are worrisome. And uh, we have to see how we take on board such technologies. I have no doubt that down the line, we will be moving towards primarily a cashless society and well have some kind of currencies like this which will be at work. For us at the Reserve Bank, this may happen in 10 to 20 years from now, but well have to figure out how we make money because the way we generate most of our revenue is through forms of seniorage. People are willing to hold currency free of interest and thats how we make money, but well figure that out. But I think these virtual currencies will certainly get much better, much safer and over time will be the form of transaction, and thats for sure.
interviewer: and India will adopt them at some point? were not going to reject them out of hand?
governer: you know, in a sense, credit cards are already performing some of that role. The amount of rupees that flow through your hands I presume are far less than used to before credit cards. So this is going to go all around, youll have near field devices which you just tap and go. I mean, all that we want to permit.
interviewer: you want to permit?
governor: yes, we want to permit. I mean were not saying were going to lose money therefore we won't do it, well find some other way of getting money, maybe the government will fund us eventually."

Oh well done the smart student!!
I am actually shocked to hear this. I didn't know that governor knew about bitcoins.
He is a wise man, he understand the potential of things and takes steps after giving lot of thought.
Hope we keep on getting such positive results.