With that brief, and somewhat simplistic, introduction to cryptocurrencies, we will now take a deeper look at the exact nature of cryptocurrencies and their implications, particularly in the context of the current debate in India on the topic.
The starting point is to get a clear understanding on (a) What precisely is a cryptocurrency, (b) What useful economic role does a cryptocurrency play, and (c) What, if any, are the risks it poses to the society and economy? (i) What precisely is a cryptocurrency? 11.