Free Press Journal

Bitcoin rally: RBI warns users of risks


Mumbai : Even as Bitcoin touches new highs fuelling investor interest, the Reserve Bank of India (RBI) on Tuesday warned the public of the risks of dabbling in virtual currencies (VCs).

Citing its earlier warnings on the subject, the central bank said, “in the wake of [a] significant spurt in the valuation of many virtual currencies (VCs) and rapid growth in Initial Coin Offerings (ICOs), RBI reiterates the concerns”, reports PTI.

The price of a single Bitcoin, whichis not regulated by any monetary authority, had skyrocketed to up to USD 11,000 last week in a rally which puzzled watchers. Bitcoins or other VCs do not yet have a wide acceptance as tender for settling trade transactions. They are ‘minted’ using algorithms that are based on blockchain technologies.