India's Central Bank Reserve Bank of India (RBI), which started the year by issuing a notice to the users of virtual currencies in the country and urging them to be extra cautious while engaging in any digital currency-related activity, seems to have had a change of heart.The RBI currently has a group that is focusing on working out a process on how cryptocurrencies can be made a legal tender in the country.

Speaking at a FinTech conference in Mumbai, Sudarshan Sen, an RBI executive director, said “Fiat will be when the Reserve Bank, for example, starts issuing digital currency which you can carry in cyberspace, you don’t have physical currency in your pocket."

The senior RBI official although also took the opportunity to emphasise the central bank’s discomfort with bitcoin, the digital currency which has recently come under intense global regulatory scrutiny.

Considering the fact that central bank has never officially strongly worded its plans on cryptocurrencies, one cannot exactly say what RBI plans on doing on the whole Bitcoin regulation issue.

The official didn't disclose how close the RBI group was on issuing a recommendation on cryptocurrencies to the government, or at what stage its review really is.

For the uninitiated, Bitcoin is the first, and currently the biggest digital currency- a decentralised tradable digital asset. The best part about the currency is that it is almost impossible to trace a bitcoin transaction back to a physical person. This particular feature makes it a hit among the dark world as it offers them an anonymity that no other currency in the world provides.

In the morning, we reported how, Jamie Dimon, the head of JP Morgan, the leading global financial services firm and one of the largest banking institutions in the United States, had completely dissed the currency saying that Bitcoin is actually a fraud that will ultimately blow up.

While the financial world biggies are still making their minds about Bitcoin, the people seems to have accepted the digital currency well. Bitcoin has more than quadrupled in value since December last year and hit about $4,700 last month before falling back. However, it fell by another 5 per cent after Dimon’s comments to below $4,000.

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