The Reserve Bank of India has reportedly not taken a liking to “non-fiat” cryptocurrencies like Bitcoin. Executive Director Sudarshan Sen said, “As regards non-fiat cryptocurrencies, I think we are not comfortable. Bitcoins for example... That's a private cryptocurrency.” Addressing the India Fintech Day conference in Mumbai, he stated that the central bank is studying the aspect of the RBI issuing a digital currency in place of the physical one.
“Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely,” Sen said. The apex bank has consistently cautioned everyone about the usage of cryptocurrencies, citing several concerns. Earlier in February, it had said, “Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk.” It cites concerns on virtual currencies like Bitcoins, stating that they pose potential financial, legal, customer protection and security-related issues.
Then deputy governor, RBI, R Gandhi said in March, “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. 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 natural limit for its progression, and finally, the usage of VCs for illicit and illegal activities has been reportedly as uncomfortably large.”
