Cryptocurrency-New possibilities

2 22

Written by

No bio yet...

4 years ago

In community: Cryptocurrency and Blockchain(7b7f)

Cryptocurrency-New possibilities . writer by @kawser595

Bangladesh, a country of 20 million people, has been undergoing a series of economic reforms over the past few years, be it bank integration or the introduction of a one-country-one-tax system like the Goods and Services Tax (GST). Given the country's growth rate, the International Monetary Fund (IMF) has rated Bangladesh as the fastest growing economy. Therefore, if the use of technology lags behind with time, it will remain an obstacle in the way of development.

The Supreme Court of Bangladesh has recognized the use of cryptocurrency in the country. The court also overturned a 2016 RBI directive stating that a ban on the circulation of cryptocurrencies such as Bitcoin in Bangladesh was recommended because of the potential risk to the banking system, such as virtual currency. With the Supreme Court ruling, cryptocurrency companies are certainly seeing a new glimmer of hope as that hurdle is lifted.

Q: What exactly is cryptocurrency?

Many may be wondering what exactly this cryptocurrency or virtual currency transaction system is or how it works. We all know that both the donor and the receiver have to rely on a third party like the bank for the transaction. This third party provides transaction services for a fixed fee. In the shadow of the global financial downturn in 2008, as confidence in banks or government systems waned, technologists were looking for alternative, reliable ways to transact. To solve the problem, one or more computer scientists under the pseudonym Satoshi Nakamoto published a research proposal online in October 2006. Where the first idea about bitcoin is given. It is a peer-to-peer electronic currency transaction system that allows customers and recipients to complete transactions without having to go to a bank or third party. This will prevent double spending on both sides.

Virtual currency does not belong to any country or government. Being a peer-to-peer network, bitcoin transactions are done from the wallet to the wallet of the donor and the recipient. Bitcoin is stored in the wallet, which can be either online or offline. A bitcoin user has to use two keys. A ‘Public Key’, which is open to everyone. The other is used to complete a 'private or secret key' transaction. The place where the history of the transaction is recorded is called the 'block chain'. Blockchain accounts for all types of transactions are updated regularly.

The way the transaction is..

In the early days of the introduction of cryptocurrency like Bitcoin in 2012, its use in Bangladesh was also on a private level. In 2013, the popularity of Bitcoin began to spread in different countries of the world. Within the country, a number of companies such as Bitexbd, Unocoin and CoinSecure have started cryptocurrency transactions and investments. In addition to online exchanges, over-the-counter crypto shops open in various locations.

The question is how cryptocurrency can affect the economy of Bangladesh. Although this special transaction system is very popular in the international market, how popular will cryptocurrency be in the cautious economy of Bangladesh. It is known that only 2% of the world's cryptocurrency transactions are in our country. Countries known as economic superpowers, such as China and the United States, have gained a record number of patents using blockchain and cryptocurrency. Developing markets in Asia, such as Thailand and the Philippines, have developed special regulatory frameworks for the use of cryptocurrencies locally. Structural reforms are also being made to protect the interests of investors and to license the establishment of crypto exchanges. At present, around Now 5.5 billion is invested in the world in response to blockchain start-ups.

According to cryptocurrency experts, this virtual currency could become a complement to the conventional banking system. But without any change in the banking sector in India, cryptocurrency can act as a digital asset. In a country like India where overall integration into the banking system has not been possible, the two transactions can go hand in hand without embarrassing the conventional financial system. Ordinary people will also benefit in this case. Cryptocurrency investment will increase people's purchasing power. Its positive impact on the economy is inevitable. The Chinese model can also be used in this case. In 2019, the country launched its own cryptocurrency system - DCEP. It is acting as an alternative to the US dollar in the currency.

Bangladesh needs a strong system to monitor cryptocurrency transactions, in particular, whether licensed to provide cryptocurrency services, prepare guidelines to protect investor interests in general, or ensure no-customer or KYC procedures to prevent misuse.