RBI did, however, say it is open to the use of blockchain technology. Blockchain technology provides a transparent and secure process to transfer and digitally record information on a shared transaction database through a secure, decentralized, peer-to-peer distributed ledger, which negates the transactional challenges of counterparty trust and the need for a central repository or ledger. It is designed to facilitate the transfer of information or property between users such that the transfer is guaranteed to be secure and known to all participants and shared across a distributed network where the legitimacy of the transfer cannot be challenged.
Related: Reddit Stops Accepting Bitcoin as Payment
India’s “tax department sent notices about cryptocurrency investing to tens of thousands of citizens after a national survey showed more than $3.5 billion worth of transactions have been conducted over a 17-month period,” according to CNBC.
Bitcoin prices traded slightly lower as of this writing, but resided above $6,700. The largest digital currency slumped 50% in the first quarter.
For more information on the cryptocurrency, visit our Bitcoin category.