Highlights of Virtual Currency Committee Recently Constituted by Central Government- Important GK Updates:
Dear Readers, Central Government has recently constituted a committee for Virtual Currencies. Here we have given the Highlights of Virtual Currency Committee, candidates those who are preparing for the upcoming exams can use this.
The Central Government has created the nine member inter-disciplinary committee to examine existing Virtual Currency or Virtual Money framework within the country and abroad. The committee is chaired by Dinesh Sharma, special secretary in the economic affairs department.
The committee will also have representatives from the Department of Economic Affairs, Department of Financial Services, Department of Revenue, Ministry of Home Affairs, IT ministry, Reserve Bank of India, NITI Aayog and State Bank of India.It has been tasked to submit its report within three months.
The committee is authorized to:
· Take stock of the current status of Virtual Currencies both in India and Globally.
· Examine the present global regulatory and legal structures governing Virtual Currencies.
· Suggest measures for tackling the issues related to Virtual Currencies including issues like consumer protection, money laundering etc.
· Examine other relevant issues related to Virtual Currencies.
What is Virtual Currency?
Virtual Currency can be described as a digital representation of value that is neither issued by a Central bank or a public authority, nor necessarily attached to a conventional currency, such as Rupee, EUR or USD, but is accepted by natural or legal persons as a means of payment and can be transferred, stored and traded electronically.
Virtual Currencies uses a cryptographic technology called blockchain that builds a shared and publicly verifiable database of transactions to prevent fraud. This creates trust between sellers and buyers, thus eliminating the need for banks to get involved to verify the process. Bitcoin,Litecoin, Ethereum, Zcash, Ripple and Monero are some examples of Virtual Currencies.
Benefits and Risks of Virtual Currencies:
The advantages of Virtual Currencies are no third-party seizure,no taxes,no tracking, no transaction costs and it cannot be stolen.
The disadvantages are, virtual currencies not widely accepted,wallets can be lost, classic cyber-threats like theft, hacking and loss can happen, no buyer protection, no valuation guarantee,non-refundable and illegal and black market activities can be funded.
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