The Reserve Bank of India (RBI) just warned investors against betting on bitcoin and other cryptocurrencies.
The Indian bank was very straightforward, “…cautioning users, holders and traders of virtual currencies (VCs), including Bitcoins regarding the potential economic, financial, operational, legal, customer protection, and security-related risks associated in dealing with such VCs.”
Indian government has made public its discomfort with bitcoin before. A week ago, the finance minister Arun Jaitley said the country doesn’t recognize virtual currency as legal. Couple months ago, a committee organized by his ministry had recommended banning digital currencies because their potential use to launder money.
“If India had to ban virtual currencies, they would have done that by now. In the last three years, the RBI’s statement has been the same: They are uncomfortable with it and people should invest at their own risk,” Vivek Steve Francis, CEO of Coinome.
These warnings come right after bitcoin’s rise —more than 1,000% this year. In India, its price has almost doubled in a month, from Rs4.55 lakh ($7,070) at the beginning of November to Rs8.6 lakh yesterday. Meanwhile, rallying keep going against all warning signs, bitcoin is at a record high, having crossed the $12,000 mark today.
