The indian central bank, the Reserve Bank of India (RBI) is planning to issue its own digital currency as an alternative to bitcoin, according to Economic Times. The bank has expressed its aversion to the crypto-currencies like bitcoin, which it considers ” currencies private.” The executive director of the central bank, Sudarshan Sen, spoke on this subject : “In regards to crypto-currencies, I think that we are not comfortable. The bitcoin, for example, is a crypto-currency private. At the present time, we have a group of people who are doing research on crypto-currencies and looking for a digital alternative to the indian rupee, so to speak. We look at this closely. “
The position of the RBI on the crypto-currencies
The indian central bank has continuously issued warnings to the public on the use of digital currencies such as bitcoin. According to the bank, these currencies are financial risk, legal, as well as risks to the safety of consumers. However, several articles appeared in some indian newspapers have claimed that the crypto-currencies are becoming increasingly popular with investors. This popularity became important when Donald Trump became the President of the United States, and that the value of virtual currencies has made a considerable leap forward.
The crypto-currency would be overvalued ?
In his commentary on crypto-currencies last march, the deputy governor of the RBI, R. Gandhi, said that the potential of virtual currencies is overvalued, citing the absence of a monetary authority or a central bank that oversees their use. “The value seems to be a matter of speculation. The legal status is certainly not there. Although this is the purpose of a virtual currency, this characteristic limits all its natural progression. Finally, the use of crypto-currencies for illegal activities and illegal growing alarmingly. “