Why does not India consider Bitcoin as a legal tender

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There was a rumour that the RBI had declared to ban Bitcoin in India, which was then clarified that the RBI had not banned Bitcoin but it had declared that it does not consider Bitcoin as a legal tender. Why does not RBI consider Bitcoin as a legal tender even when it is one of the top cryptocurrencies around the world?
Jul 2, 2018 in Blockchain by slayer
• 29,360 points

2 answers to this question.

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Bitcoin works on Blockchain technology and is decentralized. The transactions made in the Bitcoin network are peer-to-peer i.e., there is no central authority. Not being a legal tender does not mean that you can not use it to make financial transactions. It means that it is not consider as a form of currency and that it may not be accepted by people to make financial transactions. And because Bitcoin users do not require a central authority to make transactions, there is no need of banks to make transactions. Due to this, the government is not in control of any transactions made in the network. This might also affect the revenue that the government gets through the banks. And also, there are no regulations on virtual currencies as of now. The government is conducting research on how relevant it would be to consider bitcoin as a legal tender. But for now, it has declared that bitcoin is not a legal tender.
answered Jul 2, 2018 by Omkar
• 69,230 points
0 votes

to be specific there are few logical and few illogical reasons behind the entire scenario.

first RBI said that there is a 3 month ultimatum for all using crypto currency then it was siad that india will not consider it as a legal tender and the debates still continues as wether its banned or not?it is not a legal tender  because it may hinder the use of INR, albeit it is still too early to draw any conclusions in this regard.

answered Jul 3, 2018 by Priyaj
• 58,090 points

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