The Reserve Bank is uncomfortable with “non-fiat” cryptocurrencies such as Bitcoin, its executive director Sudarshan Sen said.
“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 Reserve Bank of India (RBI) in place of the physical one at present. He also added that the central bank is studying this aspect at present.
According to some media reports, there has been a growing number of investors in such currencies especially 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.
“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.
With inputs from: Economic Times