Written by: J Shiruti
Edited by: Yashi Shah
CRYPTOCURRENCY- A BRIGHT FUTURE
"I THINK BITCOIN IS THE FIRST ENCRYPTED MONEY THAT HAS THE POTENTIAL TO DO SOMETHING LIKE CHANGE THE WORLD", SAYS PETER THEIL, AMERICAN ENTREPRENEUR, VENTURE CAPITALIST, AND CO-FOUNDER OF PAYPAL.
Before getting into a comprehensive discussion about this issue, let’s first understand precisely what the term ‘CryptoCurrency’ means because it’s a trending topic now. Decently, a cryptocurrency is digital or virtual money that is utilized to secure, build, and control its transactions. Bitcoin, Ethereum, XRP, Tether are some examples of Cryptocurrency. Unlike conventional currencies, which are handed out by the central banks of all the countries, Cryptocurrency has no central monetary council. On the other side, the name cryptocurrency is a fusion of the words ‘Cryptography’ (Study of closed communication) and currency.
The fee of transactions in cryptocurrency is relatively low as compared to other means. Masses can transfer a huge amount of money in a short duration. Thus, making it volatile. It embraces anonymity as the person can only get access to the addresses, which makes the transaction more secure, restricting identity thefts.
The RBI handed out a circular in April 2018 banning legislated monetary establishments from delivering services to crypto businesses. The outlawing took off into impact three months later and banks thereafter locked the accounts of crypto trades, compelling some of them to close down. Cryptocurrency enthusiasts all over the nation have been eagerly loitering to watch what India will perpetuate about cryptocurrency. The Indian parliament has been settling on a gimmicked bill that strives to categorically prohibit cryptocurrencies, except state-issued ones, since February the previous year. The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” was inducted by an inter-ministerial committee (IMC) tasked with researching all factors of cryptocurrency and furnishing suggestions for India’s crypto strategy.
As per its current standing, India’s central bank, the Reserve Bank of India (RBI), has confirmed that there is no longer any banking ban on crypto exchanges, companies, or traders. This follows the supreme court decision to quash the RBI circular prohibiting banks from providing services to any customers dealing in cryptocurrencies. The ban lasted for almost two years. Meanwhile, the Indian government is still discussing whether to regulate cryptocurrency; the process has been delayed due to the coronavirus crisis and the nationwide lockdown. In March, it was reported that the Indian government was discussing ways to regulate cryptocurrencies with the central bank.*
Cryptocurrency is gaining wide acceptance due to its dramatic rise in popularity. People are yearning it over any other method of transactions. Apart from all these windfalls, there are some drawbacks too. Transactions are irreversible. Because of its anonymous nature, illegal and fraud transactions can easily take place. With being told about its drawbacks, we can not terminate cryptocurrency by discouraging it. We can make the most of it along with some precautionary measures. Some are still unaware of the mechanism of it. With sufficient drills, care, and awareness among crowds, cryptocurrency can become the epitome and an ideal currency in the world.
Reference: * https://news.bitcoin.com/rbi-confirms-no-ban-cryptocurrency-exchanges-businesses-traders-india/
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