<h1>RBI Warns Against Risks of Virtual Currencies Like Bitcoin; No Authorization for Use as Payment Medium in India.</h1> The government is promoting a digital economy as part of its strategy to eliminate corruption and black money, building on initiatives like financial inclusion and the Jan Dhan-Aadhaar-Mobile trinity. However, the Reserve Bank of India has warned users, holders, and traders of virtual currencies, including Bitcoins, about potential risks such as financial, operational, legal, customer protection, and security issues. The RBI has not authorized the creation, trading, or use of virtual currencies as a payment medium. This information was provided by a government official in response to a question in the Lok Sabha.