India Central Banker on Crypto: “We Are Not Comfortable With Them”br>
The executive director of the Reserve Bank of India, the country’s central bank, said the organization is “not comfortable” with cryptocurrencies, a strong indication that India may not make bitcoin into legal tender.
“Fiat will be when the Reserve Bank, for example, starts issuing digital currency which you can carry in cyberspace, you don’t have physical currency in your pocket,” said Sudarshan Sen, an RBI executive director. He was speaking at a FinTech conference in Mumbai. “As regards non-fiat cryptocurrencies, I think, we are not comfortable with them.”
Sen’s remarks added to the concerns of investors, who are already reeling from developments in China and remarks by JP Morgan Chase CEO Jamie Dimon, who termed bitcoin “a fraud” in remarks at another conference.
The RBI has not disclosed its plans on cryptocurrencies to date. There was no indication that his remarks were official policy or that the RBI would be recommending against bitcoin. But the sensitive timing certainly caused investors to fear the worst.