RBI warns on the possible risk that involved in the Bitcoin .It is the third time since 24 December 2013 reserve Bank of India has issued a statement on the possible risk involved in the trading of bitcoin. and all the similar virtual currency (VCs). It is very vital to note that Indian government has directly not issued any regulation on it although RBI warns on it regularly.
India loves Bitcoin but RBI warns
According to RBI trading in bitcoin and virtual currency is risky. The reason behind is there is no any central regulatory authority of VCs . since all the coins are stored electronically there is possible threat of cyber scam and hacking.
As per RBI since bitcoin has no any central control neither do have any authorize exchanges in India. So trading in these currency is totally risky and loss of money can’t be claimed either. Trading , creating and using in the VCs and bitcoin is not authorized neither recognized by the RBI.
similar warning has been issued in February 2017 . It is important to note that RBI has not given any licence or authorization to any entities to deal with virtual currencies including the much hyped bitcoin.
In India the price of Bitcoin is roaring like a lion in the jungle. The highest price on one of india’s largest exchange Zebpay was recorded as on 7th DEC 2017
buy rate : – 1 bitcoin = Rs 10,56,500-/
sell rate : – 1 bitcoin = Rs 10,20,106-/
Why RBI warns on Bitcoin/cryptocurrency ?
Now the point is that, is Bitcoin really a scam or a unreal currency? , or it is the possible threat to the real currency of the country , which is gaining the popularity day by day. If the currency is not good for the economy and the chances of fraud is very prevalent then why the government has not stopped the exchanges or taken any concrete step.
RBI warns on bitcoin on regular basis. This must not be taken lightly. Indian government may plan to tighten the rope of blockchain technology.
Whatever the thing is , it’s the fact of the modern time that bitcoin is the top currency on the planet earth . No currency has ever reached this price hike till date. Indian government is still thinking to regulate this currency whereas some countries have recognized it as well. Trading on bitcoin is risky and should people trade in it? , it’s the question that has no proper answer till date.
Bitcoin not to be used for payments and settlements for now: RBI Warns
Answering a query from the audience at the FIBAC banking event, S Ganesh Kumar, Executive Director of RBI said, “Our current position on bitcoins is that we will not be using it for any payments and settlements…though the technology underlying cryptocurrencies will not end.”
Sudarshan Sen, RBI Executive Director, had said, “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.”
A fiat currency is the legal status given to a currency issued by the central bank.
RBI warns may be the indication of the stricter action
“The biggest risk to cryptocurrencies is the lack of regulatory supervision. It may be possible that the Government bans all crypto exchange markets in the near future. In that case, all your hard-earned money invested in digital currencies would become inaccessible,” Jagmal Singh, CTO, Paisabazaar.com told in an interview with moneycontrol
He further said the “One of the basics of investment is to understand what you are investing in. Unfortunately, most people, including many seasoned investors, do not yet understand cryptocurrencies and the underlying blockchain technology. Most people investing in cryptocurrencies are doing it to make quick money. We strongly advise against speculative investment. When everyone is greedy, you should be fearful,”
These are just a speculation over the speculation business .No one is sure that it is really goijng to ever happen . but there is one thing very clear that some certain class of people are against it . whereas some class of people are in support of it. Reason is very simple, whoever is getting some benefit wil go with the bitcoin and vice versa.
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