RBI is not comfortable with bitcoins, says Sudarshan Sen

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The Reserve Bank is uncomfortable with “non-fiat” cryptocurrencies like Bitcoin, its executive director Sudarshan Sen said on Wednesday. “As regards non-fiat cryptocurrencies, I think we are not comfortable,” Mr. Sen said, addressing the India Fintech Day conference here.

Elaborating on what a non-fiat cryptocurrency is, Sen said, “Bitcoins for example. That’s a private cryptocurrency.”

The fiat cryptocurrency was a digital currency which would be issued by the Reserve Bank of India (RBI) in place of the physical one at present, he said, adding that the central bank was studying this aspect at present.

“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,” Mr. Sen said.

The RBI has been repeatedly cautioning everyone about the usage of cryptocurrencies, flagging a slew of concerns. It had stated that Bitoins posed potential risks.

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 Trump administration came in the U.S.