A cryptocurrency is an encrypted data that denotes a unite of currency. It is Monitored and organized by a peer-to-peer network called a (BLOCK CHAIN), things such as- BUYING, SELLING AND TRANSFERRING are all categorized under this chain. Unlike physical money. Cryptocurrencies are decentralized, means they are not issued by any other financial institutions. Some of The popular cryptocurrencies are BITCOIN, LITECOIN AND MONERO which are officially used bt various private companies.
The defining trait of a cryptocurrency is that they are not issued by government agency of any country making them immune against any interference and manipulation from them.
GOVERNMENT REGARDING THE USE OF CRYPTOCURRENCY IN THE COUNTRY-:
The government is looking at “forward looking and progressive” regulation of cryptocurrency with government sources making it clear that an unregulated market for digital currency cannot be allowed to become avenues for money laundering and terror financing.
While the government and the RBI have been discussing legislation for several months now, there has been a strong interest in cryptocurrency with many individuals, including senior citizens investing in private digital currencies. The Reserve Bank of India (RBI) has consistently maintained the need to ban private digital currency.the government may soon pilot a Bill, something it had planned during the Budget session to prohibit all private cryptocurrencies in India.While asserting that the technology of blockchain should be encouraged, the central bank has questioned the purpose of cryptocurrencies to be labelled as a currency. There was a strong statement that a currency is a sovereign right and cannot be assigned to any individual entity.
HOW BLOCKCHAIN APPLIES TO OUR LIVES-:
Particularly Bitcoin enables the citizens of a country to undermine government authority by circumventing capital controls imposed by it. It also facilitates wrong activities by helping criminals evade detection. The major issue behind the Governments proposal regarding this is simple that often in most cases institute capital controls to prevent outflows of a currency because exports could debase its value. Though for some people, this is another form of control exerted by governments on economic policy.
As cryptocurrency will make fall into many causes like – Loss Of Control Due To Decentralization, whereWith the inception of bitcoin, the government loses control over the currency system due to decentralization. As bitcoin’s underlying technology does not allow any central authority for any transaction, the government cannot regulate the monetary policy and loses its power. The most important factual concer is CRIME CONCERNS, Due to decentralization and anonymity, more and more criminals are using bitcoin as a viable method for illegal activities.
Many Cybercriminals are using this bitcoin platform to steal money from the users. Many drug mafias are using the bitcoin network to trade drugs and harmful chemicals as an ascetic export and import system. More seriously, terrorist organizations are also involved in bitcoin transactions for trading weapons.
A THREAT TO THE BUSINESS OF CENTRAL BANKS – The government controls the country’s finance and economy with the help of central banks and financial institutions, while they are more concernedabout the certain prons and cons regarding the effect of cryptocurrency in country. After Bitcoin has become the mainstream, many central banks have lost their business, which is eventually a loss to the government. Thus, the government, as well as central banks, are less in defend with this process.
So, Nobody knows whether the world will completely accept bitcoin. But the growing number of people in the bitcoin space shows that it can show the worst scenario in the present financial system and can may be worsen the category future.
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