A cryptocurrency is a digital or virtual currency which uses cryptography for security and based on blockchain technology. After explosion of Bitcoin, dozens of other cryptocurrencies have come into circulation. Meanwhile, blockchain technology which is the backbone of bitcoin has become a hit for the entire financial services industry.​

Various cryptocurrencies

Following is a list of some of most prominent altcoins circulating in the world.

1. Zcash:

Part of Zcash’s appeal is in its enhanced security and privacy. Transactions are recorded on a blockchain but details about sender, recipient and amount stays private. 

2. Ethereum or Ether:

Out of all the non-bitcoin cryptocurrencies, Ether or Ethereum (the name for the network) is more familiar. Users are particularly enamored with this digital currency because of its so-called smart contract features.

3. Ripple:

Much of the cryptocurrency space was created in defiance of the traditional banking space. Ripple’s intent has always been to aid the formal sector i.e. primarily by facilitating global payments. Company, in one of its old tweet said that 3 of the top 5 global money transfer companies are expected to use XRP ( Ripple’s cryptocurrency ) in payments.

There are several other cryptocurrencies like Litecoin, Cardano, NEM, Stellar, NEO, Dash, IOTA, Monero, Tron etc.

India’s stand on cryptocurrency

India’s stand on cryptocurrency has been ambivalent. Its a long-drawn case between the country’s virtual currency exchanges and the government. In February 2019, in a hearing supreme court of India gave one month time to government to clear its stand in the matter.

A panel headed by India’s economic affairs secretary Subhash Chandra Garg, has been working on draft regulations for virtual currencies since November 2017.

Modi Sarkar 2.0 sinks India’s cryptocurrency hopes:

The cryptocurrency community in India has been pushed to a wall since July 2018, when the Reserve Bank of India forbade banks from doing any business relationship with virtual currencies. Since then the business has been severely affected and many crypto-exchanges have shifted out of India. 

The previous Modi government had stated that while it supports blockchain technology used across industries like banking and virtual currencies, it is not in favor of digital currencies. With the return of Narendra Modi’s government, India’s cryptocurrency ecosystem has become extremely nervous.

Draft law proposes 10 year jail term:

India’s cryptocurrency market’s worst fears have come true. The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” – the draft law has proposed a 10-year prison sentence for persons who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies”. 

Besides making it completely illegal, the bill also makes holding of cryptos a non-bailable offence. Given the high chances of cryptocurrencies being misused for money laundering, various government bodies in India such as the Income Tax Department and the Central Board of Indirect Taxes (CBDT) have endorsed banning of cryptocurrencies.

In view of the tough stand taken by the government in the said draft law (which may soon become a real law or an ordinance), it is better for the enthusiasts of cryptocurrencies to give up their passion for the virtual currencies.