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Union FM Arun Jaitley said on Tuesday in the RS that cryptocurrencies like bitcoins among others, are not legel tender, and have not been approved by either the government or the RBI.

Speaking on the issue of Non-performing Assets, the FM clearly said that bulk of the NPA's today have arisen out of loans, that were disbursed prior to 1st April 2014.

The government panel is also awaiting a report on tackling cryptocurrencies in India, Arun Jaitley said.

The RBI has also cautioned from time to time about the risks of dealing with Bitcoin.

Bitcoin are a cryptocurrency with a worldwide payment system which is decentralised. This implies that the currency operates separate from the currency of the central bank of any country or a single administrator.

Through its press release dated December 24, 2013 and February 1, 2017 and once again on December 5, 2017, the RBI reiterated caution of dealing with Bitcoin. 

“Attention of members of public is drawn to the Press Release issued by the RBI on December 24, 2013, cautioning users, holders and traders of VCs including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs,” RBI said.

Value of the Bitcoin crossed $19,000 in December last year. As of today, January 2, 2018, the value of the Bitcoin converted to INR by Google is stated as Rs 8,51,073.40.

Source : DD

English Summary

Bitcoin not a legal tender in India

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