RBI seeking into crypto currencies, not comfortable with bitcoin

RBI seeking into crypto currencies, not comfortable with bitcoin

The RBI (Reserve Bank of India) has a team looking into crypto currencies as lawful tender, a senior administrator claimed this week, but emphasized the discomfort of central bank with bitcoin that has lately come under intense worldwide regulatory inspection.

“For instance, a formal authorization (fiat) will be required when the Reserve Bank begins subjecting digital currency that you can bear in cyberspace and you do not have in your pocket the physical money,” an RBI executive director, Sudarshan Sen, claimed to the media in his statement in Mumbai at a FinTech conference. “As far as the question remains of non-fiat crypto currencies, I believe, we are not contented with them,” Sen further added to his statement.

RBI seeking into crypto currencies, not comfortable with bitcoin

The central bank had not earlier disclosed its strategies on crypto currencies and Sen did not offer any data on where the talks on the matter stand. It was not clear whether the team at the RBI plans to subject a suggestion to the government on crypto currencies, or if the evaluation is at an advanced or early stage. Bitcoin is a digital currency that allows people to pay value to each other and transfer for services as well as goods by-passing banks and the typical financial networks.

Bitcoin dropped 6.6% last week, after reports that China was almost geared up to shut down domestic exchanges of crypto currency. This week, FCA (Financial Conduct Authority) of Britain warned that ICOs (initial coin offerings), the practice of selling and creating digital currencies to finance companies and projects, are of very “far above the ground” risk and tentative. Chief Executive of JPMorgan Chase & Co., Jamie Dimon, also emerged out sturdily in opposition of the bitcoin this week referring the digital currency as a fraud. It also further added that the digital currency will blow up in the coming period. The virtual currency, not supported by any government, has increased more than 4x in value to more than $4,100 since December.

Well, in short, bitcoin is that thing, which can be a bane or a boon to the society. Now, only time will decide the fate of bitcoin.

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