Future of Cryptocurrency in India
Cryptocurrency is a new kind of digital currency growing popular among investors as it has become the best investment option for most investors. Being the collection of binary data Cryptocurrencies are designed to work as a medium of exchange whereas the ownership of individual coin records are stored in a ledger created on a computerized basis using firm cryptography to secure all transaction records, to regulate the creation of new coins, & for the verification of transfer of coin ownership. These are known as fiat currencies, as these cannot be converted into a commodity. This currency does not exist in any physical form like regular currency notes that are issued by the central banks of different countries. Cryptocurrencies have decentralized control as compared with that of the central bank’s digital currency (CBDC). Cryptocurrency works through the assistance of distributed ledger technology, in the form of block-chain, which acts as a financial transaction database.
Is Cryptocurrency legal in India?
Even though many compatriots have invested in cryptocurrencies of different forms, the stand of the Government of India is still unclear as same as that of the various countries stand on it. Due to its uncertainty caused due to its decentralized nature, the governments of other countries have yet not legalized it. The Indian government has also not validated it because of which it is still considered illegal to hold or invest in Cryptocurrencies in India.
According to some reports, the government of India is going to take a ‘middle path’ for allowing the legal tender of this unregulated form of currency. This is because a large number of people have invested in these unregulated Cryptocurrencies & because the government has not taken any clear stand on it, so the investment of the people over this currency is still in abeyance. To take a middle path & for countering the issues faced by different stakeholders, the government of India will present some legislation in this upcoming winter session of the Parliament to maintain a balance & for addressing the issues of all the stakeholders.
All the stakeholders hoped that with the passage of the legislation in the Parliament, the Indian government would legalized cryptocurrency in India & that to be opened up for the investors to invest in the Cryptocurrencies.
Types of Cryptocurrency
There are many different cryptocurrencies available in the market now. Cryptocurrency, due to its unregulated nature & online availability, is also sometimes mistakenly known as the Online currency. There exists mainly 2 different forms of cryptocurrencies that includes the following:
1. Bitcoin: Bitcoin that was first released as open-source software in 2k9 is also considered the first Decentralized Cryptocurrency. After its release, there are many different other cryptocurrencies have been created.
2. Altcoins: All the cryptocurrencies other than Bitcoins are considered to be known as Altcoins. It includes Zebpay, Unocoin, Coindelta, Pocketbits, etc.
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