Cryptocurrency is digital currency that allows transaction to remain anonymous while confirming the transaction is valid. It is type of peer-to-peer transaction in which blockchain technology is used. These are becoming common like Bitcoin, litecoin are frequently used at international market.
Facebook also launched its own cryptocurrency Libra.
In Modern era importance of digital currency is increasing day by day because of various reasons. The most important one is- Its easy access and global recognition. It promote decentralized system of currency which can be accessed globally. In addition to this, it is digital currency so it's market remains same worldwide. It facilitates quick transaction which hardly take few minutes and personal details are not disclosed or shared that's why it can be an important tool for E-Commerce. Countries like Japan legalized Bitcoin as a currency and India is also attempting to introduce its own cryptocurrency called Lakshmi.
Besides all these points cryptocurrency has some drawbacks:
It is a new age currency and quite complicated, its whole process is difficult to understand by a common person and it can be very risky to invest in cryptocurrency without proper understanding.
It is next to impossible to stop transaction of cryptocurrency once it is done, If a user forget his Crypto wallet password, it is not possible to retrive the password and lost data because of tight security. It is also famous for using in crime like money laundering and terrorism financing. It attracts hackers and create several security issues, due to these reasons RBI banned cryptocurrency in 2018.
Indian government should develop better clarity in people and transparency, it can be useful with strong KYC norms and can be helpful in digitalization.
Comments
Post a Comment
Thanks for showing interest. Join on Telegram Search airforcestudy on Telegram App.