- The term, “digital currency” refers to the currency that only available in electronic or digital form. Digital currency is also known as digital money, electronic money, electronic currency or cyber cash. It is intangible assets which mean we can’t touch it like bank notes and coins of traditional money. In digital currencies transaction take place between payees and payers and there is no need of intermediaries. It takes place with the help of technology like computer, smartphones and the internet.
- Popular digital currencies in the world are Bitcoin, ethereum, ripple, litecoin etc. Bitcoin world’s first decentralised digital currency was launched in 2009 by a person whose current identity is still unknown.
- In 2017, the digital currencies market has raised more than 1200%. Investing in digital currency is highly speculative. Anybody who think to invest in it should be aware of possible lose which may occur because market is unregulated. The growth of digital currency demand occur mainly due to raise in its demand and this in turn increased its value.
Digital currency in India
- The debate on digital currency in India is on its highest peak. And in India digital currency is neither legal tender or nor illegal.
- Reserve Bank of India (RBI) is looking to introduce central digital currency.
- RBI has been set up a panel to study and provide guidance on the matter.
- RBI has also directed banks and other regulate entities not to deal with or provide services to individual or business entity dealing with digital currency.
Many country including India thinking about creating their own digital currency in near future.