RBI working on cryptocurrency policy

Kolkata: Reserve Bank of India appears to be preparing a policy on cryptocurrency, a virtual money used as medium of exchange in many countries including India but is not legalised here.

Cryptocurrencies like bitcoin use cryptography to secure transactions.

RBI Deputy Governor NS Vishwanathan said that the policy was in the making at an event in Kolkata Friday.

"I can't comment on a policy which is still in the making," he said responding to a query on whether RBI would encourage use of cryptocurrency.

RBI is in fact exploring a possibility of issuing its own fiat cryptocurrency while it is not comfortable with non-fiat or private cryptocurrency like bitcoin.

Last month RBI executive director Sudrashan Sen said that an internal group was exploring the possibility of issuing it while China has banned bitcoin exchanges a leading to sharp drop in cryptocurrency flows worldwide.