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Comparing the Indian rupee and Bitcoin is an exercise of pitting one volatile currency against another in today’s currency climate.

The Indian rupee dropped to historic lows this summer ($68.80) on fears of the Fed tapering its bond-buying program. The rupee has slowly climbed back about 10% from that point and India is reportedly working on a program to boost the national currency.

Bitcoin, on the other hand, climbed to its historic high in April of this year ($266) before settling down around $100 to $140. Still volatile, the currency can jump 15% or more on news.

In light of these movements, an interesting trend has emerged in India: people are turning away from their own currency and toward Bitcoin.

The Wall Street Journal blog reported (with data from The Genesis Block) that Indian Bitcoin client software downloads increased 17.23% in the third quarter.

“Considering the volatility in developing market currencies like the rupee, it’s not surprising that people in India would be exploring alternatives,” said Greg Schvey, head of digital currency research for The Genesis Block and a former fixed income analyst at Citigroup. “Entrepreneurs have been quick to capitalize on bitcoin’s potential and are already setting up remittance companies, exchanges and conferences throughout the country. Bitcoin also offers near-free monetary transfer which could dramatically benefit India as the world’s largest remittance market.”

Related: Argentina Bitcoin Adoption Jumps

CC image by FriskoDude

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