Can rupee be replaced? RBI looking into cryptocurrencies, not comfortable with bitcoin

img

New Delhi: The Reserve Bank is uncomfortable with "non-fiat" cryptocurrencies such as Bitcoin, its executive director Sudarshan Sen said today.

"As regards non-fiat cryptocurrencies, I think we are not comfortable," Sen said addressing the India Fintech Day conference here.

Elaborating on what is a non-fiat cryptocurrency, Sen said, "Bitcoins for example. That's a private cryptocurrency."

The fiat cryptocurrency is a digital currency which will be issued by the Reserv ..

According to some media reports, there has been a growing number of investors in such currencies over the last few years, especially with the huge spurt in the value of a few of them since the Donald Trump administration came in the US.

"Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk," the RBI had cautioned on its website in February this year.

The RBI has been repeatedly flagging concerns on virtual currencies like Bitcoins, stating that they pose potential financial, legal, customer protection and security-related risks.

"I believe its potential is being overstated. We can see that in these types of solutions for virtual currency, there is no central bank or monetary authority," RBI's then deputy governor R Gandhi had said on March 2 this year.

"Value seems to be a matter of speculation. Legal status is definitely not there. While this is a purported objective of a VC, it puts a natural limit for its progression. And finally, the usage of VCs for illicit and illegal activities has been reported as uncomfortably large," Gandhi had said.

- PTI


Posted By: PDD          Views: 2394                  

Some More News

img

Large Number Of Marriott Associates & Citizens Participate In 'Run to Give' Charity Run

Courtyard by Marriott, Bhopal Join Hands in Support of Rising Star Outreach, an NGO based in Chennai

read more
img

Aliens or solar flare? Questions remain as Sunspot Observatory partially reopens after FBI closure

Part of the New Mexico space observatory has reopened, following its sudden FBI closure due to an un

read more
img

Europe working on payment system alternative

Europe working on payment system alternative to SWIFT & IMF to attain financial independence from US

read more
img

IL & FS Skills organizes an Industry Partner's Meet

IL & FS Skills Skills Development Corporation Limited (IL & FS Skills) organizes an Industry Partner

read more
ÔĽŅ