Cryptocurrency and it's feasibility in India.

 

cryptocurrencies are digital currencies in which encrypted technique is used to regulate the generation of units of currency and to variety the transfer of funds, it works independently of a central bank.

example- ripple, ethreum, bitcoin, Cardano, etc.

ever since it comes in limelight, the rbi has adopted the introduction of cryptocurrencies in India due to,

1.  sovereign guarantee -  these currencies pose risks to consumers as they are not backed by the sovereign state, hence they are not legal tender.
2. volatile -  their speculative nature also makes them highly volatile, for instance, the value of bitcoin fell from 20000 USD in 2017 to 3800 USD in 2018.
3. security - if the user loses hits a private key, then the key cannot be retrieved. 
4. money Laundering - due to the anonymity of users this platform could be used for terrorist financing and money laundering.
5. malware threat - the private keys stored in technical services are prone to malware attacks.

feasibility of cryptocurrencies in India

1. An inter-ministerial committee recommended that all cryptocurrencies should be prohibited except the cryptocurrencies issued by RBi.
2. S.c. Garg committee also recommended that the government should keep an open mind on the potential use of cryptocurrencies issued by the rbi
3. so the cryptocurrencies should not be debarred instead they should be regulated by rbi
4. ever since Donald trump and Elon musk should interested in bitcoin, its viability is got strengthened.
5. as there are so many countries that have recommended cryptocurrencies India should also recognize them to match these countries in here future. 

What Next :                                                                                          

now the responsibility rests on RBI to adequately address the issue of cryptocurrencies and issue its own cryptocurrencies backed by sovereign states.