<blockquote>
<p><strong>Do bitcoin or crypto assets impact the total supply of money in a country?</strong></p>
</blockquote>
<p>They must do in practical terms, just as the use of foreign currency does</p>
<p>However, though not an economist, I suspect economists most often report on the money supply of a single government-mandated currency. This would be a question for an economics stack exchange website if one exists.</p>
<hr />
<blockquote>
<p><strong>accepted as legal tender currencies in India by RBI.</strong></p>
</blockquote>
<p>Not so far as I can see</p>
<p><a href="https://www.rbi.org.in/commonman/English/Scripts/PressReleases.aspx?Id=2152" rel="nofollow noreferrer">https://www.rbi.org.in/commonman/English/Scripts/PressReleases.aspx?Id=2152</a></p>
<blockquote>
<p>The Reserve Bank of India advises that it has not given any licence / authorisation to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc. dealing with Virtual Currencies will be doing so at their own risk.</p>
</blockquote>
<h3>Legal tender</h3>
<p>The phrase &quot;legal tender&quot; has a special meaning, at least in jurisdictions following the UK model - it determines what forms of payment can be legally used <em>in settlement of a debt</em>. A shopkeeper can refuse legal tender offered for payment for goods or services  where there is no established debt.</p>

CC BY-SA 4.0
2024-07-17T08:21:58.693Z
2024-07-17T08:27:20.433Z
2024-07-17T08:27:20.433Z
RedGrittyBrick
<p>The bit coin is a virtual currency ofcourse.As,l am not confirmed about latest RBI information.Although,it is not accepted as legal tender currency but it is considered as legal in circulation among the stake holders.So,I am sorry about this wrong information.However,the bitcoin never contribute in total supply of money of a country.Because total supply of money in our country consists of M1, M2,M3 and M4 but this bitcoin is not included among theses four category of money.</p>

CC BY-SA 4.0
2024-07-21T15:18:28.923Z
As it’s currently written, your answer is unclear. Please [edit] to add additional details that will help others understand how this addresses the question asked. You can find more information on how to write good answers [in the help center](/help/how-to-answer).
Community
CC BY-SA 4.0
2024-07-19T17:24:39.157Z
2024-07-19T17:24:39.157Z
Ronjon Handique
<p>Bitcoin like crypto asset are invisible coins or on boarding coins that have the implicit value and intrinsic values but accepted as legal tender currencies in India by RBI.</p>

CC BY-SA 4.0
2024-07-21T09:15:30.660Z
I think this would be a better question on [economics.SE](https://economics.stackexchange.com/).  It is interesting, does gold mining increase the money supply?  [That works as a functional means to transfer value](https://en.wikipedia.org/wiki/Bob_Menendez) in the US.
User65535
CC BY-SA 4.0
2024-07-21T10:38:27.557Z
It does not mean how much we have gold mines as bullion.I am asking about gold bullion market.Instead it,I want to explain about the exchange value of gold in our Reserve bank of India.That the gold reserve held by the central bank against the printing of legal tender currency.Gold mining and mint cost are both different  in meaning.Gold standard is although invalid in our monetary system but the prevalence of freely floating exchange rate and purchasing power parity theory has been adopted in present day monetary system.Gold reserve act as a differed payment in exchange market as well as PPT.
Ronjon Handique
<economic-theory><macroeconomics>
Do bitcoin or crypto assets impact the total supply of money in a country?
Ronjon Handique
# Do bitcoin or crypto assets impact the total supply of money in a country?

(Asked by: username_0 on 2024-07-16)

Bitcoin like crypto asset are invisible coins or on boarding coins that have the implicit value and intrinsic values but accepted as legal tender currencies in India by RBI.

**Tags:** economic-theory, macroeconomics

> **Comments:**
> **username_1**: I think this would be a better question on [economics.SE](https://economics.stackexchange.com/).  It is interesting, does gold mining increase the money supply?  [That works as a functional means to transfer value](https://en.wikipedia.org/wiki/Bob_Menendez) in the US.  
> **username_0**: It does not mean how much we have gold mines as bullion.I am asking about gold bullion market.Instead it,I want to explain about the exchange value of gold in our Reserve bank of India.That the gold reserve held by the central bank against the printing of legal tender currency.Gold mining and mint cost are both different  in meaning.Gold standard is although invalid in our monetary system but the prevalence of freely floating exchange rate and purchasing power parity theory has been adopted in present day monetary system.Gold reserve act as a differed payment in exchange market as well as PPT.  

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## 2 answers

### Answer by username_2 on 2024-07-17. Score: 0

> **Do bitcoin or crypto assets impact the total supply of money in a country?**

They must do in practical terms, just as the use of foreign currency does

However, though not an economist, I suspect economists most often report on the money supply of a single government-mandated currency. This would be a question for an economics stack exchange website if one exists.

---

> **accepted as legal tender currencies in India by RBI.**

Not so far as I can see

<https://www.rbi.org.in/commonman/English/Scripts/PressReleases.aspx?Id=2152>

> The Reserve Bank of India advises that it has not given any licence / authorisation to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc. dealing with Virtual Currencies will be doing so at their own risk.

### Legal tender

The phrase "legal tender" has a special meaning, at least in jurisdictions following the UK model - it determines what forms of payment can be legally used *in settlement of a debt*. A shopkeeper can refuse legal tender offered for payment for goods or services where there is no established debt.


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### Answer by username_0 on 2024-07-19. Score: -2

The bit coin is a virtual currency ofcourse.As,l am not confirmed about latest RBI information.Although,it is not accepted as legal tender currency but it is considered as legal in circulation among the stake holders.So,I am sorry about this wrong information.However,the bitcoin never contribute in total supply of money of a country.Because total supply of money in our country consists of M1, M2,M3 and M4 but this bitcoin is not included among theses four category of money.

> **Comments:**
> **username_3**: As it’s currently written, your answer is unclear. Please [edit] to add additional details that will help others understand how this addresses the question asked. You can find more information on how to write good answers [in the help center](/help/how-to-answer).  

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