India Central Bank: Confidence in Bitcoin, Blockchain Can Only Come From Authority Endorsement

Reserve Bank of India (RBI) Deputy Governor Rama Gandhi has implied confidence in virtual currency can only come about if authorities endorse it.

In cautionary remarks on Bitcoin and Blockchain on Wednesday, the central bank senior also said decentralized technology overtaking traditional forms of tender is a “pipe dream.”

“It may remain a pipe dream that Blockchain will eliminate currency by ushering in virtual currency,” he commented, further adding that “it is unlikely.”

Gandhi’s remarks come amid fervent trading in Bitcoin and altcoins Ethereum and Dash, in particular, pushing all three to test or exceed all-time high price points.

In Bitcoin’s case, he says, this could nonetheless be simple early-stage hype.

“The initial round is always filled with adventurists and risk seekers. The moment masses gets in, the risk avoiders get in and they will need greater confidence for its acceptance and continuance,” he continued.

This “confidence,” allegedly, can only come from authorities like the Reserve Bank of India.

Indians meanwhile continue to feel the effects of Narendra Modi’s shock currency reforms in November last year. In the latest headache for lay consumers, the government and central bank appeared to contradict each otherwithin 24 hours on the status of printing new banknotes.


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