Advances in Management and Applied Economics

On Cryptocurrencies: An Assessment of Bitcoin’s Prospect As Legal Medium of Exchange

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• Abstract

   

  Digital currency has gained importance in recent times. But definitional issue made this currency ambiguous to society and financial institutes. Digital currencies are used in real-world transaction as well as in the dark web. Digital currency comes into discussion with the creation of bitcoin - an online payment method with no intermediary or financial institute. This online payment system has a strong security system. Consequently, bitcoin account holders has been increasing considerably. We can use bitcoins legally besides other legal tenders, if existing laws do not consider these coins immoral. Also, in the midst of the ongoing global pandemic (Novel Coronavirus or Covid-19), a paperless currency like bitcoin, which also involves contactless transaction, would go a long way in preserving wellbeing for individual and economy alike. Furthermore, we can try to find out and address the problems related to this currency. After proper assessment, if we acknowledge bitcoin, they can compete with the existing coins in the present currency system, complying with government rules, and contribute to the development of the currency system. They can also work as service providers or economic agents of virtual coins, and participate in the country’s economic activities through the exchange of the coins.

   

  JEL Classification:  E42, G18, O38.

  Keywords: Cryptocurrencies, Bitcoin, Digital currencies, Virtual currencies, Cryptography, Fiat currency, Covid-19.