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cryptographic hash functions, cryptographic tokens and
public key cryptography are names for specific, but related
type of one way crypto graphic functions). The main idea is
that crypto currency uses a type of cryptography that is easy
to compute one way, but hard to compute the other way
without a "key" So we can say that it is easy to create a
strong password but it is very hard for others to guess a
strong password after it has been created.

Cons of Crypto currency:
1. It can be difficult to comprehend
2. Challenges of market fluctuation
3. No security in case of loss
4. Cyber security issues banks to actively experiment with them. Bank of England

5. Price volatility and lack of inherent value and the people's Bank of China have already published
statements that they will be issuing their own digital
6. Potential shortage of resources
currency. In country such as India, where a majority of
7. Potential mismanagement population still remains unbanked, financial inclusion could
emerge as one of the biggest benefit of central bank digital
Pros currencies. Crypto currency is a viable substitute to reduce
1. Unparalleled Transparency the need for cash, which is the only other retail form of
central bank money in circulation.
2. Instant and 24- hour accessibility
3. Absolute secrecy But the RBI has a two pronged view on crypto currencies
4. Massive potential for returns and has been very consistent in its messaging for several
years. On one hand it has repeatedly warned the general
5. Short time horizon
public against investing in crypto currencies, citing concerns
6. Increased liquidity over consumer protection, market integrity and money
laundering. On the other hand it has been quite welcoming
Crypto currency An Indian Perspective: toward block chain technology in general finding the

Crypto currencies in Indian market can no longer be applicability of crypto currencies. The current need is a clear
dismissed. Several Central banks in the world are closely articulation of what constitutes a crypto currency it
monitoring crypto currencies to both determine regulations considers to be problematic.
to protect investors as well as explore their benefits in the
context of central bank digital currencies. So there is a need Key problem that the crypto currency community needs to
of regulation. Crypto currencies today lack the regulatory address by initiating a dialogue with regulators. In Dec 2013,
safeguards that financial institutions and market have, such RBI issued the first of several statements warning users of
as third party audits, financial reporting and disclosure, the risks of trading in digital currencies. India's Finance
prevention of insider trading and proper security Minister said in statement that people will be given
infrastructure - all of which pose risks for the retail investor adequate windows to experiment with block chain, bit coins
when UN established. and crypto currency. Union finance Minster Niramala
Sitharaman has said that India is not shutting off all options
There is need of regulation regarding various aspects of when it comes to crypto currency or block chain and fin tech.
crypto currency like exchange, governance around issuance She hinted that the center many not go for a blanket ban
of new tokens, marketing etc. the potential of crypto on digital currencies in the country. So we hope that
currencies to make transactions and payments faster, Government comes with good regulation which is beneficial
cheaper and more secure has attracted several central for all. T

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