Cryptocurrency is a digital asset designed to act as a means to which individuals record the ownership of coins stored in a register that is in the computer database using cryptography powers to verify transaction records, regulate the formation of coins and verify the transfer of ownership of the coin. Cryptocurrency does not exist in physical bodies and is often not provided by the central administration.
Cryptocurrencies often use regulatory combinations as opposed to centralized digital banking (CBDC). When a cryptocurrency is created or built before it is issued or issued by someone else, it is often considered centralized.
When implemented with regulatory oversight, each cryptocurrency is activated by a distributed registry, typically a blockchain, which serves as a central point of public financial information.
While the number of private cryptocurrency exchanges operating in India is growing, the Union government has no official records of them. The Government also has no information on the number of traders involved in these trades.
Responding to a question about the number of cryptocurrency exchanges operating in India and the number of financial transactions, F M Nirmala Sitharaman in a response letter filed on Tuesday (July 27, 2021) with Rajya Sabha, said: “This information is not collected by the government.”
In response to another question about “whether drug dealing and money laundering is indeed done through multiple cryptocurrency exchanges”, FM Sitharaman said: “There is no explanation. came to the mind of the Government”. The finance minister also denied that the government would plan to impose a similar tax on the number of investors who bought cryptocurrency abroad.
While the Government does not collect information about crypto traders, their number has increased in the last 1-2 years. According to various estimates, about 1.5 million cryptocurrencies are invested in the country. It also says about 350 startups are working on blockchain and crypto.
A Bloomberg report reported last month that India’s investment jumped from $ 923 million in April 2020 to $ 6.6 billion last year.
The government hopes to work on the cryptocurrency bill. Meanwhile, the RBI also plans to introduce digital currency central banks (CBDCs) in a systematic way to reduce corruption of personal data. Recently, the Deputy Governor of RBI, Rabi Sankar, said the central bank “is working on a roadmap plan and evaluating the use of cases that could be implemented in a small way or neither. “
The RBI is investigating the status of CBDCs, their properties, their markers, the distribution of images, and other labels, among others.
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