Report: Indians invested $40 bn in cryptocurrency in 2020

As per Chinalysis report, Indians who are known to traditionally invest in gold are now investing into cryptocurrency.

Key Findings

• India is home to world’s biggest holders of gold (25,000 tonnes).
• Now, Indians are shifting towards cryptocurrency and have invested billions in it.
• Investments in cryptocurrency has increased from $200 million $40 billion in last one year.

Concerns

This investment has increased even though Reserve Bank of India (RBI) is not inclined towards digital currency. RBI had banned banks from supporting cryptocurrency transactions in 2018 following several digital currency frauds. However, in March 2020, Supreme Court struck down the ban and prompted RBI to notify that its earlier order has been reverted.

About Cryptocurrency

It is a digital asset which is designed to work as a medium of exchange where individual coin ownership records are stored in ledger in the form of computerized database. Strong cryptography is used to secure transaction records, control creation of additional coins and to verify transfer of coin ownership. It does not exist in physical form and is usually not issued by any central authority. Such currencies use decentralized control. When a cryptocurrency is minted or created prior to issuance or when it is issued by a single issuer, it is considered centralized.

First Cryptocurrency

Bitcoin is the first cryptocurrency released as open-source software in 2009. It is the first decentralized cryptocurrency.

First Country to legalise bitcoin

Recently, El Salvador has become first country to formally adopt bitcoin as legal tender.  Its proposal was put forward by President Nayib Bukele which was later approved by Congress.

Month: Current Affairs - June, 2021