Money & Banking

RBI needs to look deep into cryptocurrencies, says PHDCCI chief

K. R. Srivats New Delhi | Updated on January 11, 2018


‘Bitcoins are a potential tool to boost digital economy but fraught with risks’

Bitcoins are a potential tool to boost the digital economy, but today these are fraught with high risks, said Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry (PHDCCI).

The RBI should now look deep into the concept of cryptocurrencies, including bitcoins, and take a view on it. The central bank should see if these concepts could come under a proper regulatory mechanism and become a tool for promoting digital economy, Jiwarajka told BusinessLine here after releasing a PHDCCI study on bitcoins.

“We are not proponents of bitcoins. But, as an industry chamber, we are furthering the debate. The RBI should see whether a platform can be created with cryptocurrencies so that people-to-people and people-to-merchant transactions can happen with negligible cost,” he said.

Jiwarajka felt that cryptocurrencies are concepts that could be evolved into a situation enabling seamless digital transactions.

He made it clear that PHDCCI is not proposing cryptocurrencies as an instrument of investment and only looking at it as an instrument of transaction.

“The technology in cryptocurrencies or the concept will help us move to a low-cost, secure digital transaction system or will remain an instrument of speculative investment. That is the debate we are putting on the table today and RBI needs to look into this,” he said.

At the same time, Jiwarajka said anything that is unregulated and speculative in nature is fraught with risks and should not be supported.

Bitcoins are not legal tender in India, but the RBI has not still declared it illegal.

“We are not advisors for cryptocurrencies.

“As an industry chamber, we see this technology/concept as an opportunity with proper regulation to create a great tool for promoting digital economy, especially in transacting,” he said.

Published on July 26, 2017

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