RBI Advisory against the use of Virtual Currencies

The Reserve Bank of India (RBI) has issued a cautionary note to users, holders, and traders of virtual currencies (VCs) like Bitcoins, highlighting potential financial, operational, legal, customer protection, and security risks. The concerns raised emphasise the nature of VCs as they are not authorized by any central bank or monetary authority, and their creation, trading, or usage lacks regulatory approval.

Some key risks highlighted by the RBI include vulnerability to hacking, password loss, and malware attacks due to their digital nature and storage in electronic wallets. Further, the absence of an authorized central agency means no established framework for addressing customer disputes or chargebacks.

Read the advisory: RBI Advisory