The Governor of the Reserve Bank of India on Bitcoin: We can’t let it develop

Earlier this month, the governor and two deputy governors of the Reserve Bank of India weighed in at a conference on bitcoin regulation in the region.

    Reserve Bank of India Deputy Governor Shri R Gandhi speaks at the FIBAC Banking Conference 2015 in Mumbai on August 25, which focused on disruptive technologies, including finance.

    Towards the end of his speech, Gandhi delivered on two themes - cryptocurrency and crowdfunding - saying that while these technologies have the potential to be disruptive, he also noted that they could have undesirable consequences if left unchecked.

    “Digital currencies and crowdfunding have the potential to support criminal and anti-social activities such as money laundering, terrorist financing and tax evasion. While we have not received any reports of this in relation to crowdfunding, cryptocurrencies are widely suspected of being used to finance criminal activities. We must watch these developments carefully and cautiously,” Gandhi said, going on to say that cryptocurrencies can indeed help alleviate concerns about transaction settlement.

   Last year, the Indian government revealed that the Reserve Bank of India was exploring digital currencies. As early as December 2013, the bank warned of related issues and stated that it had begun investigating the technology.