Third time this year: RBI again warns against bitcoins

At a time when bitcoin is scaling new heights in valuation, the Reserve Bank of India (RBI) once again warned the general public that it has not given any licence to anyone to operate such virtual currencies.

 

This is the third such warning from the central bank since December 2013, with the last being issued on February 1. The RBI had first cautioned that the creation, trading, or usage of virtual currencies “including bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities.”

 

In February, it said people using virtual currencies would be “doing so at their own risk,” essentially saying the central bank won’t be extending any customer protection in case such currencies blow up, or get compromised.

 

The RBI said it was repeating its earlier warning “in the wake of significant spurt in the valuation of many VCs and rapid growth in Initial Coin Offerings (ICOs)”.

 

One bitcoin is now valued at $11,875 as in the past one month, riding on a bull rally in the virtual currency.

 

There are other virtual currencies in existence too, while there are some players in India offering virtual currency wallets.