Actually there is a singular reason for the tax evasion and it has nothing to do with people "wanting" something. Real estate. Some of India's real estate is

Actually there is a singular reason for the tax evasion and it has nothing to do with people "wanting" something. Real estate. Some of India's real estate is priced as high as Manhattan, but the sale process is murkier. The reported sale figure (for tax purposes) is much lower than the actual sale figure. This is very interesting for people used to Zillow - why would someone agree to a transaction like this? How does the actual exchange take place without any backing paperwork? In fact, there are people who claim that there is a physical bundle of a few billion dollars that keep changing hands as people sell and buy real estate - pretty much a closed system. There have been many attempts by startups to pull a Zillow in India, but most of them failed (including one I was associated with). Now here's the interesting point about bitcoin - I mentioned above that the current real estate market is a closed system. The Indian govt has taken a series of rightfully justified steps to eliminate physical cash from the financial system - in India, you need to pay a charge to withdraw cash from a bank and also fill in extra paperwork. This ensures no new cash enters the real estate system. Bitcoin could potentially upset the system.