New Delhi | Jagran Business Desk: Prices of Bitcoin, Tether, Ethereum and all other cryptocurrencies fell remarkably after the Centre decided to bring a bill - Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 - in the upcoming Parliament winter session to ban all private players and lay down the framework for the Reserve Bank of India (RBI) to issue a digital currency.

The bill seeks to "create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses".

As Centre prepares to introduce a bill to regulate cryptocurrencies, we at Jagran English will try to answer some of the frequently asked questions (FAQs) regarding digital currencies:

What is cryptocurrency?

In simple terms, cryptocurrency, which is sometimes known as crypto, means the digital or virtual currency that cannot be seen or touched. It is based on an algorithm that you can deposit in an online wallet.

Bitcoin, which was released in 2009, as open-source software, was the first decentralised cryptocurrency. However, there are more than 100 cryptocurrencies in circulation now.

How can I store a cryptocurrency?

A cryptocurrency can be deposited in an online wallet by a private company through a 'crypto exchange online'.

Is it legal tender?

In India, cryptocurrency is not a legal tender yet. This simply means that you cannot purchase or sell something through it.

Is India going to ban cryptocurrencies?

According to a report by News18, the Centre will not ban cryptocurrencies completely. However, through its bill, the Centre will ban all the private cryptocurrencies in India, with certain exceptions.

Is there any country where cryptocurrencies are banned?

In China, all cryptocurrencies transactions are considered illegal. Besides China, cryptocurrencies are banned in Nigeria, Turkey, Bolivia, Ecuador, Algeria, Qatar, Bangladesh, Indonesia, and Vietnam.

Posted By: Aalok Sensharma