Indian Central Bank Studies 'Fiat Cryptocurrency' for Digital Rupee

Indian Central Bank Studies'Fiat Cryptocurrency for Digital Rupee                          Sep 13 2017 at 16:00 UTC by Rachel Rose O'Leary

Indian Central Bank Studies'Fiat Cryptocurrency for Digital Rupee Sep 13 2017 at 16:00 UTC by Rachel Rose O'Leary

The RBI has been repeatedly cautioning everyone about the usage of cryptocurrencies.

"As regards non-fiat cryptocurrencies, I think, we are not comfortable with them", Sen added.

According to him, bitcoin is a private cryptocurrency.

The Reserve Bank of India (RBI) is examining the feasibility of a government-backed digital currency - or fiat cryptocurrency - even as peer-to-peer virtual currencies like bitcoin remain unregulated in the country.

"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".

The RBI has not disclosed its plans on cryptocurrencies to date. "As such, any user, holder, investor, trader, etc. dealing with virtual currencies will be doing so at their own risk", the regulator had said.

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.

The Reserve Bank of India further said it has not given any licence and authorisation to any entity or company to operate such schemes or deal with bitcoins or any virtual currency (VCs).

"Value seems to be a matter of speculation".

A fiat currency is the legal status given to a currency issued by the central bank. "And finally, the usage of VCs for illicit and illegal activities has been reported as uncomfortably large", Mr Gandhi had said.

Jamie Dimon, chief executive of JPMorgan Chase & Co, also came out strongly against bitcoin this week dubbing it a "fraud", and adding that it will blow up.

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