We all are acquainted with the word crypto, bitcoin and other similar words and how they are used. It is a recent trend that these days people buy crypto currency for the investment purpose. It is a type of investment not exactly similar to stock market or commodity market but somehow a bit relevant to the same.
What is Crypto currency?
It is a form of digital currency coins or virtual currency. It is designed for use as an exchange mode of payment through a computer network; it is currently not authorized with any central Government or bank as a currency exchange mode.
They are also known as Defi coins, NFTs and asset backed coins.
There are four types of cryptocurrency:-
- Utility: It is a cryptocurrency on smart contract blockchain system that is further used in serving the specific function in the crypto project ecosystem. It is not yet designed in a manner where it can be used in the real world as an exchange medium.
- Payment: Crypto currency is used as medium of exchange and thus used as payment type for making payments.
- Security: It is a type of cryptocurrency which is used in representation of fractional assets that have real asset value such as company assets, equity and so on. That means the people with this type of cryptocurrency have an ownership right in the company.
- Stablecoins: These are the coins which are designed in a manner that keeps the stability of price as a fiat. It is a type of cryptocurrency which manages stable value with respect to specific asset or currency.
Legal scenario of crypto currency in India:-
Currently, In India crypto currency use is not legalized and it comes under the category of gray market.
RBI has issued a circular in 2018 prohibiting all the major banking sectors in India either commercial or cooperative to be correlated with any of the transactions related to cryptocurrency in the country which therefore leads to the huge hindrance in the market of cryptocurrency in India as there was no financial medium available for this business transaction in India.
Later, after this a writ petition has been filed in the supreme court of India by the cryptocurrency websites dealer in India. Further after the government opposition and citizens demand, the government came up to the new conclusion for cryptocurrency and launched a new bill on it.
In the year 2021, the proposed new bill came into existence with the name ”Cryptocurrency and regulation of official digital bill currency bill 2021” by the Indian Government which helps in outlawing private cryptocurrencies in India with few exceptions.
Now, here I would like to request all my readers to please submit a blog post to us like we did on crypto write for us sharing their views and opinion about the crypto currency.
Further, at the end I would just like to end my blog by mentioning that crypto is an emerging market but still not established that well in India.