Published: 15th March 2021
What the FAQ: What is cryptocurrency? Who invented it and which countries are using it?
While the government wants to bring a law to ban digital assets, Finance Minister, Sitharaman says that people in India can still experiment with blockchain technology to up the finance tech sector
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Picture: Edexlive
Cryptocurrency like bitcoin is the new gold. As a result, tech innovators in India have been doing several experiments in this area. On March 4, 2020, the Supreme Court of India lifted the Reserve Bank of India's ban on cryptocurrency imposed in 2018, thus, giving investors in cryptocurrencies a new lease of life.However, the Government of India is now planning to bring a new law that will not only ban digital money but also penalise the people who have these digital assets. This will directly impact the crypto money investors and cryptocurrencies like bitcoin and dogecoin.
At the same time, Nirmala Sitharaman, Finance Minister, Government of India who was present in a conclave, said, "From our side, we are very clear that we are not shutting all options. We will allow certain windows for people to do experiments on blockchain, bitcoin or cryptocurrency." Now, this statement is a bit in contrast to the law the government proposes to to bring. But we thought of explaining the concept of cryptocurrency and how it works.
What is cryptocurrency?
Cryptocurrency is a form of payment that can be exchanged online for goods and services. It works using a technology called blockchain. This technology is a decentralised one and it works across many computers — managing and recording transactions.
Who invented cryptocurrency and the technology to manage it?
Cryptocurrencies and the underlying technology to make them work were created by Satoshi Nakamoto from Japan in 2009.This name used by the presumed pseudonymous person or persons who developed bitcoin. Nakamoto also devised the first blockchain database. Though many people have come forward to claim that they are Satoshi Nakamoto, the person's identity continues to remain secret.
Which countries use cryptocurrency the most?
Latin America is the region where many cryptocurrency users are located. Apart from this. Africa, Southeast Asia, Brazil, Colombia, Argentina, Mexico and Chile are the countries that use cryptocurrency.
