Now a days, we are hearing about bitcoin, a virtual currency introduced in 2009. Currently there are more than 1,500 cryptocurrencies available for trading, with Bitcoin dominating the market. Bitcoins are not issued, or regulated by any central bank, so there are huge changes in the prices of bitcoin. The cost of this currency was less than a rupee when it was introduced but its current cost is Rs.722000. we can see a remarkable speculation in this virtual currency. This currency is created through a computer-generated process known as mining. There are so many exchanges through which we can trade these currencies eg. Block chain, Koinex, Binance etc. The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. Mr. Arun Jaitly Finance minster of India has already said in a press conference that bitcoin is not a legal tender .The government or Reserve Bank of India (RBI) has not authorized any Virtual currency as a medium of exchange.” With this statement, there is finally some clarity on how India plans to treat bitcoin. So far, it was not clear if bitcoin would come under the purview of Reserve Bank of India.
About the Author
Dr. Santosh Kumar
Dr. Santosh Kumar is a faculty in the Finance area.