Blockchain And Cryptocurrency
BANKING FINANCE|January 2022
Finance has long been a very conventional field with no major breakthroughs happening for many years until the introduction of Bitcoin in 2008 by an anonymous person/ group going by the name of Santoshi Nakamoto. Some people look at cryptocurrency as a major technical breakthrough in the field of Finance that has the potential to change the way we transact, while some look at it with skepticism since it can lead to increase in underground transactions. Through this paper we first try to understand what does 'Cryptocurrency' mean and briefly explain how does blockchain works,then whether truly cryptocurrencies are fool proof with no chance of fraud, and lastly,Reserve Bank of India's opinion on cryptocurrencies. The universe of cryptocurrencies comprises of various tokens and talking about each one of them is beyond the scope of this paper. In this paper we try to focus only on Bitcoin.
Navnit Kumar
Blockchain And Cryptocurrency

About the author

Navnit Kumar Senior Manager (Faculty) Union Bank of India Staff Training Centre, Gurugram

Understanding the term 'Cryptocurrency'

Before defining cryptocurrency, we must understand the characteristics of currency. A well-functioning currency should have 3 functions:

Store of Value: Store of Value means that the value of a currency should be stable over time. Due to high volatility this criterion is not met by cryptocurrencies.

Unit of Account: Unit of account means that money should allow us to easily determine the value for goods and services and allow us to compare them to each other. The volatility of Bitcoin makes it difficult for us to consider it as a unit of account.

Medium of Exchange: Medium of Exchange means that money should allow buyers and sellers to make transactions. Bitcoin partially fulfills this criterion but slow transaction speeds, high volatility poses some hurdles.

Since cryptocurrencies do not fulfill these criteria defining cryptocurrency as 'virtual currency' would not be inaccurate.

Now coming to Cryptocurrency, the Inter RegulatoryWorking Group on Fintech and Digital Banking set by RBI in 2017, defines cryptocurrency as digital representations of value, issued by private developers and denominated in their own unit of account. They also added that cryptocurrencies are not necessarily attached to a fiat currency but are accepted by natural or legal person as a means of exchange.

Brief understanding of Blockchain and Bitcoin

Diese Geschichte stammt aus der January 2022-Ausgabe von BANKING FINANCE.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der January 2022-Ausgabe von BANKING FINANCE.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS BANKING FINANCEAlle anzeigen
BURNOUT AT THE INDIAN BANKS: BREAKING THE CYCLE OF STRESS
BANKING FINANCE

BURNOUT AT THE INDIAN BANKS: BREAKING THE CYCLE OF STRESS

The Indian banking landscape is undergoing a period of significant transformation. Mergers, acquisitions, rapid technological advancements, and an increasingly competitive environment are driving growth in the sector.

time-read
8 Minuten  |
June 2024
Financial Services in Free Trade Agreements
BANKING FINANCE

Financial Services in Free Trade Agreements

India Exim Bank organised a workshop on “Financial Services in Free Trade Agreements”.

time-read
1 min  |
June 2024
HDFC Bank introduces PIXEL: A new generation of Digital Credit Cards
BANKING FINANCE

HDFC Bank introduces PIXEL: A new generation of Digital Credit Cards

HDFC Bank announced the launch of ‘PIXEL’ – its first end-to-end mobile app-based customisable, DIY digital card range designed for Digital Natives. PIXEL is tailored for a generation characterised by digital fluency, unique preferences, and distinct financial behaviours.

time-read
1 min  |
June 2024
ICICI Bank enables NRI customers to use international mobile number to make UPI payments in India
BANKING FINANCE

ICICI Bank enables NRI customers to use international mobile number to make UPI payments in India

ICICI Bank announced that it has enabled NRI customers to use their international mobile number to make UPI payments instantly in India, thereby significantly enhancing their convenience of making everyday payments.

time-read
1 min  |
June 2024
Karur Vysya Bank opens its 840 th Branch at Ayodhya
BANKING FINANCE

Karur Vysya Bank opens its 840 th Branch at Ayodhya

Karur Vysya Bank (KVB) inaugurated a new branch at Ayodhya today. This is the 840th Branch of the Bank. Dr. Meena Hemchandra, Chairperson, Karur Vysya Bank inaugurated the Branch. Ayodhya is the 7th Branch of the Bank in Uttar Pradesh and the 35th Branch in the Delhi Division of the Bank.

time-read
1 min  |
June 2024
ROLE OF 5G IN ACCELERATING DIGITAL TRANSFORMATION IN THE BANKING LANDSCAPE
BANKING FINANCE

ROLE OF 5G IN ACCELERATING DIGITAL TRANSFORMATION IN THE BANKING LANDSCAPE

The emergence of 5G technology presents a transformative opportunity for the banking industry.

time-read
5 Minuten  |
June 2024
EMOTIONAL AI IN BANKING
BANKING FINANCE

EMOTIONAL AI IN BANKING

\"I believe that at the end of the century, the use of words and general educated opinion will have altered so much that one will be able to speak of machines thinking without expecting to be contradicted.\" - Alan Turing (23 June 1912 - 7 June 1954)

time-read
10 Minuten  |
June 2024
WOMEN ENTREPRENEURSHIP - A STRONG WHEEL OF INDIA'S GROWTH ENGINE
BANKING FINANCE

WOMEN ENTREPRENEURSHIP - A STRONG WHEEL OF INDIA'S GROWTH ENGINE

The importance of women entrepreneurship for economic development is widely recognized. India is one of the fastest growing economies and the importance of women entrepreneurship is felt at every level. Women entrepreneurship plays an important role in creating jobs, wealth, poverty reduction, human development, education, health and national development, especially in developing countries like us. The objective of this article is to recognize the contribution of Women entrepreneur in writing India's growth story.

time-read
10+ Minuten  |
June 2024
NAVIGATING THE ETHICAL ABYSS: THE DEEPENING QUANDARY OF AI-GENERATED DEEPFAKES
BANKING FINANCE

NAVIGATING THE ETHICAL ABYSS: THE DEEPENING QUANDARY OF AI-GENERATED DEEPFAKES

In the digital age, where reality and simulation intertwine seamlessly, the emergence of artificial intelligence has thrust us into uncharted territories. With meticulous precision, algorithms now craft media that blurs the lines between truth and fiction, ushering us into an era fraught with ethical dilemmas and privacy concerns.

time-read
5 Minuten  |
June 2024
THE HISTORY OF THE INDIAN BANKING INDUSTRY
BANKING FINANCE

THE HISTORY OF THE INDIAN BANKING INDUSTRY

The history of the Indian Banking Industry is rich and diverse, reflecting the country's economic and political evolution over the centuries. Banking services play a vital role in the Indian economy, serving as the backbone of its financial system. Here's a brief overview:

time-read
3 Minuten  |
June 2024