Cryptocurrency In India: One Step Forward, Two Steps Back

INTRODUCTION

Any recognized currency used around the world is defined as a "fiat currency" since such currencies are backed by a fixed commodity and are issued by the government. However, changing this is cryptocurrency. Cryptocurrency is not backed against a commodity or issued by the government and does not exist physically.

Cryptocurrency is a collection of binary data, stored on secured transaction records and distributed over a vast network of technological infrastructure and protocols called a distributed ledger technology ("DLT"). The DLT allows a user to simultaneously access, validate, and update records in an unchangeable manner across a network that's spread across multiple entities or locations. There are two principal ways in which cryptocurrencies are deployed, i.e., as a legal tender through payment systems such as cryptocurrency trading platforms or cryptocurrency wallets or as a form of an asset issued through an initial coin offering where it is