RBI mulls its own cryp­tocur­rency

Banking Frontiers - - Regulator -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.