Government committee to keep a check on virtual currencies

The government of India has formed a committee to suggest an action plan within three months for dealing with virtual currencies, including bitcoins.

The officials are worried about the use of virtual currencies, which are also known as digital or crypto currencies.

The Reserve Bank of India had also informed users, holders and traders about possible security, legal, financial and consumer related risks involved in virtual currencies.

The committee will have representatives from various departments of the government and banks.

Virtual currencies are digital money which are used and accepted among the members of a virtual community.

Virtual money is based on the system of trust and is not issued by a central bank or any other banking authority.