Bitcoin not a legal tender in India

Finance Minister Arun Jaitley cleared out that Bitcoin is not a legal tender in India. Even, the government is also waiting for a report of an expert on cryptocurrencies before taking any decision.

Recently the government has warned the investors to be wary of virtual currencies such as Bitcoin Australia, mentioning that they are like Ponzi schemes with no legal tender and protection.

The finance minister mentioned in a statement, “There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes

The price of Bitcoin has surged nearly 1,200 during the past one year to $13, 268 on January 2, 2018, from $1,030 on January 3 previous year.

During the Question Hour in Rajya Sabha, DMK member Kanimozhi wanted to know whether the government was considering investing in cheap dedicated server bitcoin centers or in regulating crypto-currencies such as Bitcoin and ethereum, as India “accounts for more than 11 percent” of such trade worldwide.

The minister Arun Jaitley emphasized that the Centre’s consistent position was that such currencies were not legal tender.

He added, “The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to crypto-currencies to propose specific actions to be taken”.

He said while repeating the message was being given that such currencies are not legal tender. He added that more detailed steps would be taken once the report of the committee is submitted.