Business news: RBI said- Cryptocurrency is not a currency, Bitcoin is risky

RBI Executive Director P Vasudevan says cryptocurrencies cannot be considered ‘currency’ as they have no intrinsic value. It is ultimately for the government to decide how to deal with crypto currencies, he said at an event at IIM Kozhikode. Currently Bitcoin has no legal backing in India. Investors have to pay tax on the income earned from business.

RBI has adopted a critical stance towards new age crypto currencies like Bitcoin. He says that these currencies pose systemic risks to financial systems. On regulatory action and sanctions against Paytm Payments Bank, Vasudevan said self-regulation can better protect the financial technology sector.

Foreign exchange reserves decreased by 5.24 billion dollars
The country’s foreign exchange reserves declined by $5.24 billion to $617.23 billion in the week ending February 9. In the week of February 2, this reserve had increased to $622.5 billion. According to RBI data, foreign currency assets declined by $ 4.81 billion in the week of February 9. The country’s gold reserves decreased by $350 million.