RBI warns of risks involved in using Bitcoin and other virtual currencies
The central bank said it had not issued licence or authorisation to any entity or company to operate with any virtual currency.
The Reserve Bank of India on Tuesday warned against the use of Bitcoins and other virtual currencies, cautioning users, holders and traders of potential economic, financial, operational and legal risks associated with such dealings.
Earlier on Tuesday, Bitcoin surged to a record high of $11,850 (approximately Rs 76,3021). On Sunday, it had climbed as high as $11,799.99 on the Luxembourg-based Bitstamp exchange, Reuters reported.
In a statement, the central bank said it had not issued any licence or authorisation to any entity or company to operate with bitcoin or any virtual currency.
The RBI’s remarks were a reiteration of a statement it released in 2013 listing the risks involved in trading in virtual currencies.