What is Cryptocurrency | It’s Condition in Indian Economy

What is Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. In India, the use of cryptocurrency has been a topic of debate and controversy.

In 2018 the Reserve Bank of India (RBI) issued a circular banning regulated entities from dealing with or providing services to individuals or businesses dealing in virtual currencies. This led to the closure of many cryptocurrency exchanges in India. However, the Supreme Court of India quashed the circular in March 2020, paving the way for the legalization of cryptocurrency trading in India.

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Use of Cryptocurrency in India

Currently, there is no specific law governing the use of cryptocurrency in India. However, the Indian government has expressed concerns about the potential risks associated with cryptocurrency, including money laundering, terrorism financing, and fraud. The government has also proposed a bill that seeks to ban all private cryptocurrencies in India and create a framework for the development of a digital rupee, the official digital currency of India.

Cryptocurrency Growth in India

Despite the uncertain regulatory landscape, the use of cryptocurrency in India has continued to grow, with a significant increase in trading volumes and interest from investors. Some Indian startups are also exploring the potential of using blockchain technology, the underlying technology behind cryptocurrency, in various sectors such as supply chain management, healthcare, and finance.

Overall, the regulatory environment for cryptocurrency in India is still evolving, and it remains to be seen how the government will approach the use of virtual currencies in the country.

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