Bitcoin started as a Peer to peer virtual currency system. With Baidu (Google in China) starting to accept payments in Bitcoin, there is now an official patronage for the system from the Chinese Government.
In a further bid to provide greater legitimacy to the system there is now an attempt to bring a physical version of Bitcoin.
Coinmonk.com has announced release of physical version of Bit coins in denomination of 0.01 and o.1 BTC. Given the current valuation of BTC at around US$1000, the physical coins have a value of US $ 100 and US $10.
At this point of time there is no clarity on the policies of RBI on how it would like to deal with this development.
All users of Bitcoin must understand that the legality of the system is a grey area and RBI may come out with some clarifications any time.
As a promotional measure, some sites are offering free bitcoins. (Click here for more information). While receiving free credits to your bitcoin account on an experimental basis may at present be considered as not contravening any law, users need to be careful while spending the amount. Pumping in real money into the account and anonymizing in a privacy controlled Crypto Wallet has certain issues with regulatory agencies. Users need to steer clear of any possibilities of their real money being converted into what the regulators may consider as “Black Money”.
At present Naavi.org is exploring the RBI policies and trying to receive some clarifications which will be shared with the public as and when available.
Naavi
