RBI bans Bitcoins, other virtual currencies, prohibits any dealing with banks
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India's second-largest private-sector lender HDFC Bank has blocked all its credit and debits cards to buy or trade cryptocurrencies. The bank also cited warnings by the the apex bank Reserve Bank of India RBI and the finance ministry on these virtual currencies. Amazon to reportedly 3D scan your body to sell you the perfect fit Falling data and voice revenue may force mobile operators to monetise content Microsoft Build What to expect and how to watch it live Smart microchip 'Batless' can help develop affordable IoT devices Facebook checks for impersonators within friend circle Google spotted testing new features ahead of Google IO conference Flipkart Big Shopping days: Brands Infographics Checklist Featured infocus Specials.
Here's a recap of the warnings issued by RBI Last week, finance minister Arun Jaitley too had said that the government has not granted any legitimacy to cryptocurrencies like Bitcoin. Therefore, they are prone to losses arising out of hacking, loss of password, compromise of access credentials, malware attack etc. Since they are not created by or traded through any authorised central registry or agency, the loss of the e-wallet could result in the permanent loss of the VCs held in them.
Payments by virtual currencies, such as Bitcoins, take place on a peer-to-peer basis without an authorised central agency which regulates such payments. There is no underlying or backing of any asset for virtual currencies. As such, their value seems to be a matter of speculation. Huge volatility in the value of VCs has been noticed in the recent past.
Thus, the users are exposed to potential losses on account of such volatility in value. It is reported that virtual currencies, such as Bitcoins, are being traded on exchange platforms set up in various jurisdictions whose legal status is bitcoin legal in india rbi unclear.
Hence, the traders of virtual currencies on such platforms are exposed to legal bitcoin legal in india rbi well as financial risks. There have been several media reports of the usage of virtual currencies, including Bitcoins, for illicit and illegal activities in bitcoin legal in india rbi jurisdictions.
WannaCry virus hackers collected ransom in Bitcoins from their victims to unlock their computers. Meanwhile, the apex bank has constituted a group to look at the possibility of having a government-backed cryptocurrency. This, if comes into being, bitcoin legal in india rbi be an alternative to the rupee for digital transactions.
