Virtual currencies susceptible to misuse, cautions RBI

Vastavam web: Flagging possible “black money” risks from virtual currencies like Bitcoin, the RBI has told a parliamentary panel that they are “susceptible to misuse” by terrorists and fraudsters for laundering money.The Reserve Bank further said it has not given any licence and authorisation to any entity or company to operate such schemes or deal with Bitcoin or any virtual currency (VC).An inter-disciplinary committee, which includes an RBI representative, has been constituted by the finance ministry to examine the regulatory framework with regard to virtual currencies, the central bank said.
“It is true that while virtual currencies may have legitimate uses, some of their characteristics like anonymity make them susceptible to misuse or abuse,” the RBI said.Highlighting that there is no underlying or backing of any asset for virtual currencies, the RBI said huge volatility in their values has been noticed in the recent past.