India's central bank acknowledges Dogecoin as virtual currency

2013 has been a tumultuous year for virtual currencies, with ups, downs and everything in between. As the cryptocurrency Bitcoin hit the mainstream and became popular, new virtual currencies began springing up in its path, including one that's been taking the world by storm: Dogecoin. In case you didn't already know, Dogecoin is a semi-satirical currency based on the popular 'doge' or 'shibe' meme. It became popular earlier this month after it hit reddit and was reported on by BusinessInsider, but today seems to be a landmark: In a press release by India's central bank, the Reserve Bank of India, Dogecoins were acknowledged as a legitimate virtual currency - amongst the likes of competitors such as Bitcoin and Litecoin.

After a rollercoaster couple of months for largest virtual currency Bitcoin, in which the price fluctuated between $1000 and $200, many have sought more stable alternatives. Dogecoin, which is currently valued at around $0.0005881 USD, has been making headlines as one alternative; but the press release by the Reserve Bank of India may solidify its place as a legitimate competitor to the cryptocurrency giant. According to the release:

"The Reserve Bank has mentioned that it has been looking at the developments relating to certain electronic records claimed to be “Decentralised Digital Currency” or “Virtual Currency” (VCs), such as Bitcoins, Litecoins, bbqcoins, Dogecoins, etc...."

And Dogecoins don't seem to be slowing down any time soon: While there doesn't seem to be a shortage of bad news about Bitcoin, like the case of the UK man accidentally throwing away a hard drive containing $75 million worth of the currency, or the recent theft of a Bitcoin gift on live TV, Dogecoins are on the rise. While we don't know what the future may hold for the cryptocurrency, it can certainly be said that it can only go up from here.

Source: Reserve Bank of India | Image via Dogecoin.com

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Those who bashing Dogecoin mindlessly, don't know a thing about it. First do some research on Dogecoin about it's popularity and accessibility. It's a better people's coin than Bitcoin and have a bright future ahead. Allready lots of people adopted it as the next Bitcoin, it'll gain momentum in India after this acknowledgement from central government... Hop on the Doge train while you can guys....

The way the pyramid scheme works is you run an algorithm that creates "coins" and it takes progressively longer to create the next one. That allegedly means the size of the coin pool is physically linked to the power of computing technology and eventually will hit a physical limit. The problem with the theory is people will just create a new series like Dogecoin so really the pool is infinite.

Stealing and piracy is the same but stealing "virtual currency" is probably not illegal at all in many situations. It doesn't have any of the legal protections of real currency.

Mr. Hand said,
The way the pyramid scheme works is you run an algorithm that creates "coins" and it takes progressively longer to create the next one. That allegedly means the size of the coin pool is physically linked to the power of computing technology and eventually will hit a physical limit. The problem with the theory is people will just create a new series like Dogecoin so really the pool is infinite.

So a virtual coin is valued at the computing effort it took to generate?
If you spend resources to create a coin, doesn't it mean that it is negative the cost of the computing power - that is debt?

you cant make a copy of a coin, technically you can copy a wallet i suppose, then spend the contents of the wallet before the original user does, but that would be in itself stealing. trying to get the law to recognize that would be a tough thing to do...

_Alexander said,

So a virtual coin is valued at the computing effort it took to generate?
If you spend resources to create a coin, doesn't it mean that it is negative the cost of the computing power - that is debt?

It's supposed to be valued by the scarcity as it becomes impossible to make more due to physical limits of computing machines. In reality the value of currency is created by law and a police enforcing the value. If someone is in your debt, you must take your country's currency for it. You cannot demand anything else nor do you have to accept anything else. The only reason that's the case is the government says so.

Just read through the source pdf, not a single statement says that they acknowledge the currency as legitimate currency for transactions nor any other virtual currency. They are are saying they are just observing the market and asks Indians to be cautions from using the various virtual currencies as there is no concrete backing authority of these transactions and no assets defining the valuation causing much volatility.
Did I miss something?

the fact that they call them a virtual currency or a decentralized digital currency is in itself an acknowledgement that they are a form of currency.

The doc mentioned at the site cautions against use of VC's like "Dogecoin", nowhere does it say that the bank has acknowledged Dogecoin as an acceptable VC.

What happened to egold? ... didn't it get rumbled as a fraudsters paradise years ago?

I wouldn't be surprised if these new e-currencies go the same way .. caution advised!

In the UK I thought this was a play on the word Dodgy as in Your Dodgy as ****! *sigh* And Arent the Central Banks owned by the Rothchild's? I wonder what will happen when they decide to get their hands on the Virtual Currency markets!

Albert said,
you can only use it to buy microsoft products. anything else. it turns to crap.
Why in the world would I need to buy anything else? Seriously, an Apple and Google free world would be a much better place.

AsherGZ said,
Why in the world would I need to buy anything else? Seriously, an Apple and Google free world would be a much better place.

Tell us how you really feel, lol.

Oh man, I thought that meme was dead already...what's the slogan for this? "So shiny. So virtual. So Dogecoin. Wow"? Urgh, I hurt my head just writing that.

Of all the virtual currencies to get recognised by a country, they choose Dogecoin.