Bitcoin hits record high of 11,850, RBI reiterates warnings about trading
Mumbai: The Reserve Bank of India (RBI) on Tuesday reiterated its concerns about Bitcoins, amid the cryptocurrency hit a record high of 11,850 on Tuesday, stoking fears that a rapidly swelling bubble could burst in a spectacular fashion.
Bitcoin powered to a record high of $11,850 today, continuing its surge from below $1,000 at the start of the year. The cryptocurrency was last up 2% on the Luxembourg-based Bitstamp exchange.
The RBI said it wanted to reinforce its previous message to “users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs.”
The statement was issued after the cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as $11,799.99 on the Luxembourg-based Bitstamp exchange on Sunday.
The RBI had previously said those trading in virtual currencies were doing so at their own risk, given that the central bank has not given a licence or authorisation for any company to deal in such cryptocurrencies. Reuters