Cryptocurrencies, or virtual currencies, are digital means of exchange that uses a cryptography for security. The word ‘crypto’ comes from the ancient greek word, ‘kryptós’, which means weather hidden or private. Cryptocurrencies challenge the orthodoxy of how a currency works in the ways that worry some and excite others. It could transform the way we do transactions as the so-called distributed ledger technology behind their blockchain can be integrated into all sorts of business processes. The Inter-Ministerial Committee (2019) noted that the technology underlying cryptocurrencies could improve the efficiency and inclusiveness of the financial system. However, several risks have also been associated with cryptocurrencies which have been highlighted through the cryptocurrency bill.
Authored By Parth Bathla, FIMT, GGSIPU, Delhi.