A number of Bitcoin operators in India have begun suspending their business following RBI's warning against use of such virtual currencies due to potential money laundering and cyber security risks.
While RBI is yet to come out with a clear regulatory framework for bitcoins, which have been gaining currency across the world over the past few months.
It has issued an advisory cautioning general public against use of bitcoins and other virtual currencies.
Points--
On December 24, a number of entities offering bitcoins services have suspended their operations, temporarily or indefinitely, while websites of a few others have gone down.
Mainly, some other entities continue to run their operations of offering bitcoins exchange services for rupee and other currencies.
What Is Bitcoin ?
Following Points are Listed Below--
Bitcoin is a virtual currency that can be generated through complex computer software systems with solutions shared on a network, although the process is complex and such 'mining' can be done only on very powerful servers.
Hardly three years into existence, bitcoins has already become the world's most expensive currency and its per unit value soared past USD 1,000 $ level or about Rs 63,000 recently, although the prices have now slipped below Rs 50,000 level.
Bitcoin came into existence in 2009 and the current number of bitcoin units generated so far stands at about 11 million.
Mainly, only a small number of bitcoins are being used for real commercial and retail purposes and a majority of transactions are happening for speculative investments.
While RBI is yet to come out with a clear regulatory framework for bitcoins, which have been gaining currency across the world over the past few months.
It has issued an advisory cautioning general public against use of bitcoins and other virtual currencies.
Points--
On December 24, a number of entities offering bitcoins services have suspended their operations, temporarily or indefinitely, while websites of a few others have gone down.
Mainly, some other entities continue to run their operations of offering bitcoins exchange services for rupee and other currencies.
What Is Bitcoin ?
Following Points are Listed Below--
Bitcoin is a virtual currency that can be generated through complex computer software systems with solutions shared on a network, although the process is complex and such 'mining' can be done only on very powerful servers.
Hardly three years into existence, bitcoins has already become the world's most expensive currency and its per unit value soared past USD 1,000 $ level or about Rs 63,000 recently, although the prices have now slipped below Rs 50,000 level.
Bitcoin came into existence in 2009 and the current number of bitcoin units generated so far stands at about 11 million.
Mainly, only a small number of bitcoins are being used for real commercial and retail purposes and a majority of transactions are happening for speculative investments.
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