The Reserve Bank is uncomfortable with “non-fiat” cryptocurrencies like Bitcoin.
What is a non-fiat cryptocurrency?
- 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 said, adding that the central bank is studying this aspect at present.
- Right now, RBI have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak.
- The RBI has been repeatedly cautioning everyone about the usage of cryptocurrencies, flagging a slew of concerns.
- 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 has been repeatedly flagging concerns on virtual currencies like Bitcoins, stating that they pose potential financial, legal, customer protection and security-related risks.