Looking back in 2010, only a few people at that time knew what Bitcoin meant and even when some people got to know about it, they considered it as a kind of Ponzi scheme.
"All countries are working to legislatively regulate the use of this financial instrument, and the financial instrument is very volatile, that is, today it has one price, tomorrow another. In order for us not to have so-called deceived investors, regulation is necessary. The Ministry of Finance will prepare such a draft law by the end of the year”.
The RBI worries about misuse of digital currency by terrorists and fraudsters for laundering money. As such it has cautioned a governmental parliamentary committee tasked with studying and developing a framework for digital currencies about the potential for their misuse by terrorists and fraudsters. Consisting of RBI representative, an inter-disciplinary committee has been constituted by the finance ministry to look at the regulatory framework with regard to virtual currencies.