RBI Governor: “Virtual currencies will be much safer and get better in future”

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RBI Governor: “Virtual currencies will be much safer and get better in future”

Reserve Bank of India Governor Raghuram Rajan recently exhibited his views on virtual currencies like Bitcoin.

In an interactive session with students organized by popular Indian news channel NDTV, Dr. Rajan was asked by one of the attendees about India’s current stand on digital currencies, to which he replied:

“I have no doubt that down the line, we will be moving towards primarily a cashless society and we’ll have some kind of currencies like this which will be at work. For us at the Reserve Bank, this may happen in 10 to 20 years from now.”

The Governor however pointed to Bitcoin’s security and price stability as one of its major issues that is holding it back from wider adoption. He although remained optimistic about virtual currencies as a payment technology, saying that they will be much safer, and will get better with time.

Almost a year back, RBI (under a different leadership) warned users of the potential implications that come by using cryptocurrency as a mode of payment and investment. Back then, the central bank also announced to examine the issues associated with decentralized money, and how it possibly impacts the existing legal framework of the country.

However, India and Bitcoin hardly made any appearance in a single sentence over the span of the last 12 months. The landscape surrounding digital money however has changed surprisingly, thanks to increasing awareness among politicians and merchants. RBI, for now, is surely looking towards experimenting with this new payment infrastructure.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com