1. What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is not issued by any central authority, theoretically making it immune to government interference or manipulation. The first cryptocurrency that was launched was the Bitcoin.
2. What are its unique features?
A cryptocurrency is difficult to counterfeit. It can be bought, sold online and remitted abroad without paying any fees to a bank or other over-charging financial intermediaries. However, its anonymous nature of transactions makes it well-suited for nefarious activities like money laundering and tax evasion.
3. What is Bitcoin?
Bitcoin is a virtual currenty, which operates as public and private keys— long strings of numbers and letters linked through an encryption algorithm. The Bitcoin balances are kept on a public ledger, along with all Bitcoin transactions, that is verified by a massive amount of computing power.
4. Are Bitcoins legally accepted in India?
Bitcoin deals are not illegal in India but are currently unregulated. The RBI wants to understand and learn about the developments of this virtual currency before regulating it. It has emphasised the need for preparedness on the part of regulators and policy-makers to respond to these