India’s RBI says they will not adopt bitcoin for payments or settlements

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Bitcoin India

India’s central bank has made it clear once again that they are not going to adopt bitcoin for payments or settlements, but they are researching on the underlying blockchain technology.

The latest reaffirmation on the not-adopting-bitcoin-stance came through RBI director Ganesh Kumar who while addressing a banking event said that the central bank’s position on bitcoin is that they will not be using it for any payments or settlements purposes. As Kumar suggests, the central bank will not be using bitcoin for its “fiat cryptocurrency” initiative that the RBI is currently looking into – a stance that was recently revealed by RBI executive director Sudarshan Sen.

“[In] regards to non-fiat cryptocurrencies…we are not comfortable,” Sen stated at a FinTech conference in September. “Bitcoins for example. That’s a private cryptocurrency.”

Awareness about bitcoin continues to spread like wildfire because of which more and more central banks of various countries are being asked questions on their as well as country’s stance on bitcoin and cryptocurrencies in general. Interest in cryptocurrencies has forced many countries Singapore, China, Canada, and Russia to start working on central bank-issued digital currencies.

Meanwhile, the RBI’s official stance on bitcoin remains a public notice advising retail investors and citizens to be wary of bitcoin investments or usage in the country, a rehash of a similar statement from December 2013. The recent boom in adoption – India’s finance minister Arun Jaitley underlined a ‘notable growth’ of the country’s bitcoin market this year- has since led to Indian authorities establishing a digital currency committee to develop a framework for the legal and regulatory future for cryptocurrencies in India.

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