RBI mulls its own cryptocurrency
The Reserve Bank of India is examining the feasibility of a government-backed digital currency. RBI’s ED Sudarshan Sen said RBI has set up an internal group to examine the possibility of creating a fiat cryptocurrency that can be issued by the central bank. He said RBI is does not think non-fiat cryptocurrencies like bitcoin can be issued by it. Sen explained that the fiat cryptocurrency is one that a government has declared to be legal tender, but it is not backed by any physical commodity. It could be something like an alternative to the Indian rupee, so to speak, he added. The RBI had said earlier it has not authorized or licensed any company to operate in cryptocurrency. It has on the other hand cautioned the users of virtual currencies about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to.