Crypto Currencies Have No Underlying Value, Says RBI Official

Crypto currencies cannot be referred to as “currencies” as they have no underlying value, a central bank official said.

The Reserve Bank of India (RBI) has been critical of new-age currencies like bitcoins, saying they pose systemic risk to the financial systems.

“Crypto currencies cannot be called currencies as they don’t have any underlying value,” P Vasudevan, an executive director at the RBI, said during a panel discussion organised by IIM-Kozhikode here.

Ultimately it is a call that the government has to take on how to tackle crypto currencies, the official said.

Currently, bitcoins have no legal backing in India and investors have to pay a tax on the income earned by trading in them.

In the backdrop of the action against Paytm Payments Bank and curbs imposed on some international card providers, Vasudevan said self-regulation can protect the fintech sector better.

He also said that mechanisms could be looked at to highlight bad behaviour.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)