The RBI (Reserve Bank of India) just issued a caution against Bitcoin. The announcement can be viewed on their official website. The full text is as follows:
The Reserve Bank of India has today cautioned the users, holders and traders of Virtual currencies (VCs), including Bitcoins, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to.
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., their usage or trading in the country and the various media reports in this regard.
The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities. As such, they may pose several risks to their users, including the following:
The Reserve Bank has also stated that it is presently examining the issues associated with the usage, holding and trading of VCs under the extant legal and regulatory framework of the country, including Foreign Exchange and Payment Systems laws and regulations.
Assistant General Manager
Press Release : 2013-2014/1261
As the Rupee is unlikely to do much better in 2014 than it did in 2013, and the Indian government seems powerless to prevent its citizens protecting their wealth in gold, it’s understandable that the RBI is concerned about Bitcoin rendering it obsolete.
This post was last modified on 17/12/2017 04:44