[2017-02-06] Firstpost: RBI cautions users against use of virtual currencies

[polynesia]

RBI cautions users against use of virtual currencies, including Bitcoin and Dogecoin

http://tech.firstpost.com/news-analysis/rbi-cautions-users-against-use-of-virtual-currencies-including-bitcoin-and-dogecoin-361053.html

Promotion of virtual transactions, and a shift towards a less cash economy is a key part in the Government’s efforts for cleaning up the system and weed out corruption and black money.

The JAM trinity, which is made up of the Pradhan Mantri Jan Dhan Yojna, the Aadhaar card and the spread for mobile connectivity were important precursors to the demonetisation. A question was raised in the Rajya Sabha over the status of virtual currencies in the country, including cryptocurrencies such as Bitcoin.

Bitcoin is not controlled by any central authority, and as such is seen as a hedge in times of financial instability. Arjun Ram Meghwal, Minister of State in the Ministry of Finance, in a written reply to the Rajya Sabha pointed out that the RBI had cautioned citizens against the use of virtual currencies, including Bitcoin, and that as such Bitcoin has not been authorised in India. The creation of, trading in virtual currencies enjoy no legal protection mechanisms. The users are potentially exposed to financial, legal and operational risks.

[Blackshadow007]

RBI cautions users against use of virtual currencies, including Bitcoin and Dogecoin

http://tech.firstpost.com/news-analysis/rbi-cautions-users-against-use-of-virtual-currencies-including-bitcoin-and-dogecoin-361053.html

Promotion of virtual transactions, and a shift towards a less cash economy is a key part in the Government’s efforts for cleaning up the system and weed out corruption and black money.

The JAM trinity, which is made up of the Pradhan Mantri Jan Dhan Yojna, the Aadhaar card and the spread for mobile connectivity were important precursors to the demonetisation. A question was raised in the Rajya Sabha over the status of virtual currencies in the country, including cryptocurrencies such as Bitcoin.

Bitcoin is not controlled by any central authority, and as such is seen as a hedge in times of financial instability. Arjun Ram Meghwal, Minister of State in the Ministry of Finance, in a written reply to the Rajya Sabha pointed out that the RBI had cautioned citizens against the use of virtual currencies, including Bitcoin, and that as such Bitcoin has not been authorised in India. The creation of, trading in virtual currencies enjoy no legal protection mechanisms. The users are potentially exposed to financial, legal and operational risks.

As the website update mentioned

" The virtual currencies are stored in digital wallets, that can be compromised in various ways including hacks, malware, and loss of password. Once lost, the virtual currencies are permanently lost as there are no legal mechanisms to address the loss. Virtual currencies can also be stored on physical media, such as USB drives and hard drives. These drives can be physically stolen, or damaged, or lost, which would lead to permanent loss of the virtual currency stored in the physical storage medium.

There is no way to report problems, settle disputes or charge banks. The transactions for virtual currencies takes place using a peer-to-peer system, with no regulation from an authorised central agency. Without these support systems in place, users are particularly vulnerable to spam, phishing and social engineering approaches to manipulate users into giving up their cash. "

I hope this rule worked for Gaypal aka PayPal .

[jaideep1000]

It really pains me to see how the government doesn't support bitcoin.

The current fiat system must change.
IMO if there can be a way to tax bitcoin, only then will the government even look at officially legalizing it.

[Blackshadow007]

It really pains me to see how the government doesn't support bitcoin.

The current fiat system must change.
IMO if there can be a way to tax bitcoin, only then will the government even look at officially legalizing it.

Please read the article carefully before you start panicking . Govt. never mentioned they not supporting or accepting bitcoin , they just mentioned that its the person's own risk to use virtual currencies not only BTC but other too .. On the whole this is the news for the article posted by OP . No where its mentioned that INDIANS CANNOT USE BITCOINS , so just don't make that false news or panic to public .

[erikalui]

What RBI is trying to convey, we are already aware of the same. There is no way to report any crime that takes place in any virtual currency and the same way, there is no protection for users who deal in INR too. If a person receives fraudulent funds, there is nothing that the RBI can do and the scammer just escapes. Atleast in bitcoins, the money is irreversible and stays with the buyer.


This author of this article promotes Unocoin at the end LOL

[Blackshadow007]

What RBI is trying to convey, we are already aware of the same. There is no way to report any crime that takes place in any virtual currency and the same way, there is no protection for users who deal in INR too. If a person receives fraudulent funds, there is nothing that the RBI can do and the scammer just escapes. Atleast in bitcoins, the money is irreversible and stays with the buyer.


This author of this article promotes Unocoin at the end LOL

So true lol haha :v

[zahra4577]

RBI has not warned against using cryptocurrency rather it has reminded of extra precautions necessary to take for storing these currencies

[Marma Kalari]

What RBI is trying to convey, we are already aware of the same. There is no way to report any crime that takes place in any virtual currency and the same way, there is no protection for users who deal in INR too. If a person receives fraudulent funds, there is nothing that the RBI can do and the scammer just escapes. Atleast in bitcoins, the money is irreversible and stays with the buyer.


This author of this article promotes Unocoin at the end LOL

They do advertise Unocoin and what strike me the most is that it said that 500 merchants across India accepts bitcoin which is a news for me as i have not come across atleat 10 merchants that accepts bitcoin in India.The rest of the things said are literally true as coins stored can be hacked,but you can take measure to safe guard your coin.