Categories: Bitcoin Entertainment

Reserve Bank Governor: India “will adopt digital currencies at some point”

Click here to view original web page at

The Governor of the Reserve Bank of India has said he has “no doubt” that digital currencies will play a role in India's future society. Drawing a comparison between the rise of debit and credit cards in the country, the Governor argues digital currency will help pave the way to a cashless society.

Speaking during a wide-ranging TV interview in New Delhi, Reserve Bank Governor Raghuram Rajan made his first comments on Bitcoin and the world of digital currencies yesterday mixing both caution around the issues of price instability, and previous examples of coin theft, with optimism about the future implementation of digital currencies in society.

Reserve Bank Governor Raghuram Rajan

Rajan explained he believes India will adopt digital currencies “at some point,” but mixed this optimism with cautionary words about Bitcoin's current price instability, vulnerability to theft, and concern at some “worrisome” underlying technologies behind the digital currency. Comparing the idea of Bitcoin to the similar rise of debit and credit cards India is seeing, he explained that he has “no doubt that down the line we will be moving towards primarily a cashless society, and we will have some kinds of currencies like this which will be at work.”

Although Rajan was keen to offset his longer-term belief in the rise of digital currencies with the current problems facing Bitcoin, his comments place him in a small number of global financial leaders who are beginning to warm to the possibilities that these new forms of currency can represent. The Bank of England also issued a report earlier this year that called the Blockchain system “a genuine technological innovation which demonstrates that digital records can be held securely without any central authority,” but again mixed this interest with concerns about market volatility and vulnerability.

For the Indian Reserve Bank Governor, his off-the-cuff discussion of Bitcoin, prompted by an audience member, seems to demonstrate a genuine interest in the digital currency world. Rajan's views summed up Bitcoin as a technology in a state of development, explaining his belief that “these digital currencies will certainly get much better, much safer, and over time will be the form of transaction” and it was on the basis of that continued improvement that he included the idea that “India will adopt them at some point.”

The Indian Reserve bank itself previously washed it hands of digital currencies as back in 2013 it declared that all domestic Bitcoin exchanges were not only “unregulated” but would remain that way. The Bank's alternative protection for consumers was instead to warn the public not to invest in digital currency due to the perceived risk of losing their money.

Analyst Tone Vays however told CoinTelegraph that India may now be seeking to “promote a system where people are allowed to use bitcoin […] but ONLY through a government approved intermediary like Coinbase or Circle.

“This way they can maximize the tax revenue (cash is […] becoming a major problem for broke government at all levels) and also have the ability to have those companies shut down accounts,” he continued.

This increasing governmental and regulatory interest in Bitcoin seen in recent months looks set to polarize the states involved. Whilst Rajan made his softly encouraging comments in India, the domestic debates about digital currencies in Russia and Australia have continued to move in a more destructive direction. Under Putin's direction, the Russian state has continued to edge closer to outlawing all “currency alternatives” in a bid to protect the value of Ruble. Australia has likewise also recently issued directives that look set to “double tax” Bitcoin purchases and payments in the country, a policy sure to dampen interest from merchants looking to take digital currency payments.

Did you enjoy this article? You may also be interested in reading these ones:

Are you holding on to your bitcoins hoping their value will increase? Why not trade in the meantime using up to 8x leverage. Profit in rising, falling or flat markets. Find out more at

Speaking during a wide-ranging TV interview in New Delhi, Reserve Bank Governor Raghuram Rajan made his first comments on Bitcoin and the […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: carone

Recent Posts

Wealth manager launches world-first bitcoin yield fund

A US-based wealth manager has claimed an industry milestone with the launch of the first cryptocurrency derivatives-based yield fund on… Read More

5 hours ago

CME Group To Launch Bitcoin Options In Early 2020, Cites Client Demand

CME Group Inc (NASDAQ: CME ) announced Friday that it will launch options on its Bitcoin futures contracts in the… Read More

5 hours ago

Nigerian Rocks Crypto World By Returning NGN 28.8 Mn Worth Of Bitcoin That Was Sent To Him In Error

Here’s the latest on today’s edition of “Wait, What?!”; A Nigerian man woke up one day to find that NGN… Read More

5 hours ago

Bakkt: A Big Boost For Bitcoin (BTC) or Will It Flop?

Share Tweet Send Share The launch of the largest institutional bitcoin product of the year is finally upon us. Can… Read More

5 hours ago

Bitcoin (BTC) Metrics Pointing to Bullish Returns

Share Tweet Send Share Many analysts over the years have said that bitcoin is a speculative bubble, comparing it to… Read More

5 hours ago

Bitcoin Sheds $10,000 Support Again Ahead of Bakkt Launch

Ahead of the launch of Bakkt’s Bitcoin (BTC) futures, bears have continued to assert control over the cryptocurrency market. Ouch.As… Read More

11 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More