BJP MP raises bitcoin issue in Lok Sabha, asks govt to keep tabs on virtual currency

A BJP member in Lok Sabha on Wednesday asked the government to check the use of bitcoins, a virtual currency, as its transactions have soared to Rs 2,000 crore per day.

Maintaining that bitcoins were illegal and a parallel and unregulated currency which was being increasingly used in India, Kirit Somaiya said the illegal trading through bitcoins have reportedly gone up to Rs 2000 crore per day, which is being used for buying drugs and other contrabands, he said.

“I urge upon the government to take a look at bitcoins. It is an illegal currency”, he said.

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The RBI had earlier warned that it has not authorised dealings in or use of virtual currencies and had cautioned those investing in the instruments like Bitcoins.

Those investing in such virtual currencies are exposing themselves to potential financial, operational, legal, customer protection and security related risks, it had warned.

Bitcoin is a cryptocurrency as well as an electronic payment system, invented by a group of unidentified programmers. The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies and law enforcement agencies globally.

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During the Zero Hour, Saugata Roy (TMC) raised the issue of lowering of interest rates on small saving schemes saying it would hit the middle class. He demanded withdrawal of rate cut on small savings.